As a commercial real estate finance expert in the New York real estate market for more than 15 years, Nick Cassino has plenty of first-hand experience with the "cyclical nature" of commercial real estate. The senior vice president and branch manager of the New York City loan origination office of Berkadia Commercial Mortgage is responsible for leading a team of seasoned mortgage bankers as they work with commercial real estate owners and developers to finance properties in an unpredictable market environment. How has the turmoil in the commercial real estate market affected Berkadia's loan origination business, particularly the New York City office? The commercial real estate business has been way down everywhere. The capital markets have been dislocated for some time, and it has not been "business as usual" for the past few years. Fortunately, Berkadia has very strong relationships with Fannie Mae, Freddie Mac, HUD/FHA and a number of insurance companies and other third-party capital sources, so we have been able to keep busy. It would have been much worse if HUD/FHA and the government sponsored enterprises (GSE) had not continued to actively provide much-needed liquidity for multifamily real estate finance. It has been more difficult to obtain financing for other commercial property types such as office, retail, warehouse, hotels, etc., but that situation is showing signs of improvement. Berkadia has more than 20 offices in markets around the country including our New York office, which was established nearly 15 years ago. Having a nationwide network of offices gives us, and our clients, broad access to valuable local market information. In addition to our office in Manhattan, which has eight seasoned mortgage bankers, the New York/northern New Jersey area is covered in our office located in nearby Red Bank, N.J., which has five mortgage banking professionals. Berkadia also has an office in Syracuse specializing in HUD/FHA financing. Multifamily has been less affected by the downturn than some other segments, and in the New York market it continues to be a strong sector. Largely owing to the existence of debt available through GSE and HUD/FHA programs, the majority of our recent business has been in multifamily property finance. For example, John DiCrocco, one of the mortgage bankers in our office, recently originated an $88.458 million loan through our Freddie Mac program for the refinance and recapitalization of an apartment complex in Staten Island. Our office in Syracuse originated $100 million in construction financing through HUD/FHA for the construction of the new Elizabeth Seton Pediatric Center, a residential nursing facility and affiliated school in Yonkers. Although still somewhat limited, other capital providers are trickling back into the market and that will open up more financing opportunities for other property types. Insurance companies and banks are becoming increasingly active and there are even signs of life in the conduit lending arena. Financing is available for property types other than multifamily, but borrowers may need to live with lower leverage, more stringent due diligence and some level of recourse. What has changed most about the way you do business since 2008? We went from a very liquid market with many financing options to one that was almost completely frozen. Deal flow dried up and properties weren't trading. For a while, the only deals we saw were refinances or distressed sales. Things are slowly getting better, but we're nowhere near where we were prior to 2008. As a result, we need to work much harder to find financing that works for our clients and their deals. What does it take to stay competitive in today's market? It's back to the basics. Know your customers and understand their goals. Have the expertise and resources to offer them certainty of execution. Deliver the results you promise. In the years leading up to the market disruption, I think many in our industry forgot the importance of those things. Our business became commoditized. While that's a great thing for liquidity, I think there was less of an emphasis on building good, old-fashioned relationships. I'm happy to see that returning. What do you think is the single most important attribute needed by a commercial real estate finance firm? What is most important to your customers? I think certainty of execution is at the top of the list for most clients. When financing is difficult to obtain, it becomes even more critical. In the past, if a capital source backed out at the last minute, or couldn't reach the required proceeds level, there were a dozen more who were willing and able to take its place. That kind of depth doesn't exist in this market, so your client relies even more heavily on you to make sure the deal gets done. What are some of the most interesting things you have done in your real estate career? The industry has undergone significant changes since I entered the commercial real estate field, and there also have been major changes in the company since I joined the organization in 1999, when it was GMAC Commercial Mortgage. I have been fortunate to be with a company that afforded me opportunities to learn many parts of the business. When I started, I relied more on my legal background to help negotiate deals and get them closed. Later I became more involved in overseeing underwriting and credit for GMAC Commercial's conduit program, which was very active at the time, as well as some of the company's balance sheet positions. I also helped set up GMAC Commercial's lending programs in Canada and Europe and worked on many of the deals we financed abroad. Understanding the legal and underwriting differences was challenging and rewarding at the same time, and I really enjoyed it. Moving to the mortgage banking side of the business in 2005 gave me yet another perspective. Being able to gain broad experience in many aspects of the business has kept things fresh for me, not to mention a lot of other activity within in the company in recent years. In 2006, an investor group acquired a majority interest in GMAC Commercial and the name of the company was changed to Capmark Financial Group Inc. Capmark filed to reorganize under Chapter 11 in October 2009 and in December sold its North American loan origination and servicing businesses to Berkadia Commercial Mortgage, which is 50% owned by Berkshire Hathaway Inc. Despite the challenges of the market, and even with a bankruptcy to contend with, the loan origination platform, especially multifamily finance, had a pretty good year in 2009. We relinquished our 10-year position as Freddie Mac's number-one Program Plus lender—slipping to number three—and we held on as the top HUD/FHA multifamily lender. We also continued as a leading Fannie Mae lender. The sale to Berkadia has put us on a much firmer footing and we have good reason to be optimistic about the future. As senior vice president, Cassino is manager of the local loan origination office of Berkadia Commercial Mortgage. Berkadia acquired the loan origination and servicing businesses of Capmark Financial Group in December 2009. Cassino joined GMAC Commercial Mortgage, which in 2006 changed its name to Capmark Finance Inc., in 1999. Prior to assuming his current role five years ago, Cassino was a senior manager in GMAC Commercial's Proprietary Lending Group and was instrumental in establishing and managing its Merchant Banking Division. He also played an important role in establishing and growing GMAC Commercial's Canadian and European lending operations. Prior to joining GMAC Commercial, Cassino was with Nomura's fixed-rate conduit loan program. Earlier he practiced law as an associate with Weil, Gotschal and Manges LLP. Berkadia Commercial Mortgage LLC is a privately held company in which Berkshire Hathaway Inc. has a 50 percent ownership interest. Berkadia acquired the North American loan origination and servicing businesses of Capmark Financial Group Inc. in December 2009. Berkadia is a highly rated special, master and primary commercial real estate loan servicer managing a portfolio of more than $236 billion as of Dec. 31, 2009. As a correspondent for insurance companies and a leading approved lender for Fannie Mae, Freddie Mac and HUD/FHA, Berkadia offers clients access to capital sources for the acquisition, construction, rehabilitation or refinance of commercial real estate properties.