RBC Capital Markets, New York, announced the launch of its Real Estate Mortgage Capital business in the United States with a special focus on commercial mortgage-backed securities (CMBS).
RBC's Real Estate Mortgage Capital Division initially will focus on providing both fixed- and floating-rate CMBS loans, with near-term plans for expansion into other commercial lending products such as collateralized debt obligation (CDO) loans as the business develops.
The new program extends the success of RBC Capital Markets' existing CMBS platform in Canada, which closed $655 million of securitization volume in 2005, accounting for 20 percent of the Canadian CMBS market, according to Mike Coster, head of RBC Capital Markets' Real Estate Investment Banking Group.
"Our goal is to provide our clients with strategic expertise backed by capital and full distribution for debt and equity for all types of real estate. At RBC, we measure success by repeat client business, not by volume of transactions," said Coster. "By adding CMBS capabilities, bringing on additional senior bankers and restructuring our equity research platform, we can now provide a full product suite to our public and private real estate operator clients throughout North America."
To head the group, RBC has tapped Dan Smith, most recently head of Stamford, Connecticut-based GE Real Estate's North American fixed- and floating-rate real estate financing programs.
"The CMBS market is a highly competitive one that continues to grow. The Real Estate Mortgage Capital Division at RBC Capital Markets …