Executive of the Month: Joseph Orefice, head of Investors Bank CRE Lending Group: A "Can Do" attitude; Transforming the Way Banks Originate Loans To the CRE and Multifamily Housing Sectors

Joseph Orefice heads the Investors Bank Commercial Real Estate Lending Group, and he attributes the team's success to its "Can Do" attitude. While he believes the bank's competitors may offer similar rates and terms, his Lending Group's work ethic and ability to deliver on what they say makes the most difference in the end. This approach to business is working well and the CRE Lending Group is on track to complete a record volume of transactions in 2014. As of November 30, Investors closed a total of 548 transactions: 417 multifamily housing loans; 119 commercial real estate loans; and 12 in construction financing. These numbers can be attributed to the team's high energy and intense focus, which creates a productive atmosphere. It is this culture that is the driving force behind the group's growth in New York City's commercial real estate market. The path to today's success began in 2009 when Investors' chief lending officer Richard Spengler recruited Orefice, who opened the bank's lending office at One Grand Central Place on 42nd St. in Manhattan. Orefice moved quickly to develop a highly organized, technology enhanced, and relationship-driven lending team. The group has come a long way from the days when loan officers prepared pipeline reports on ledger paper. Today, the office's structure no longer resembles the way a typical bank lender operates. Following the management principle of putting first things first, Orefice has kept his focus on a few key areas. First, of course, is keeping a close eye on credit quality. He knows that almost nothing will ruin a loan officer's reputation faster than overlooking issues that can affect a borrower's ability to repay the loan. Second, Orefice is a big proponent of utilizing technology that can help drive the loan process and exponentially enhance efficiencies. Finally, the third is hiring the right culture. He believes the right mix of people working in a productive environment can be more important than any one person's resume or contacts. That mix at Investors' CRE Group is now originating over $2.5 billion in loans in the $1 million to $50 million range each year. But the team had some early growing pains. In the beginning, loan officers were doing everything from sourcing deals to conducting the flood search on a property. This traditional bank model is not scalable. Orefice's solution was to divide the workload among a number of people. This division of labor approach is similar to the models used by the high-volume origination shops. Even though Investors is now consistently ranked among the top commercial mortgage lenders in the New York Metropolitan Area, Orefice knows that success can be fleeting. The CRE and multifamily sectors, along with the N.Y.C. real estate market are ever-changing. He believes staying abreast of all the factors that shape the market, such as the entry of new competitors or the rise of new trends in financing, is the real challenge. Despite these and other obstacles, the good news is that Orefice is leading his team in a commercial real estate market that is big and has a lot of opportunities to do deals. Investors is a portfolio lender, so the bank has the flexibility to be aggressive and offer very competitive terms, as well as in some cases, structure the transactions. Also, the bank's lending teams have worked hard to build a reputation as a group that will stand by its commitments, giving customers the confidence that their deal will close on time. As for the future, Orefice forecasts that New York City's commercial real estate and multifamily sectors will continue to expand. New York is an international city so commercial and residential space is in demand by sponsors from all over the world. Also, there continues to be an under supply of housing stock and that macroeconomic pressure is likely to continue for some time. The industry is seeing major demographic shifts in sections of Brooklyn, Queens and even parts of Manhattan, and this movement fuels the demand for more multifamily housing. é.