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The Top 20 NYC Commercial Lenders in 2016

The Top 20 NYC Commercial Lenders in 2016

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The commercial real estate market in New York remained strong in 2016, with the multifamily and office sub-markets in Manhattan still seeing high rents and steady occupancy rates, according to reports by Cushman & Wakefield and Marcus & Milichap. The Manhattan retail market showed some signs of losing steam; however, economic indicators like unemployment levels and income growth signal a positive evolution across commercial sub-markets. Meanwhile, lender confidence is high in both bank and non-bank institutions, but many of the mega-projects financed in 2016 were picked up by foreign banks and insurance companies. 

In our latest study, we ranked the top commercial lenders in New York based on the total volume of credit issued this year, to highlight the biggest players of the financing business in New York. In our Top 20 ranking we covered loans issued on all multifamily, office, retail and industrial properties in 2016 across four boroughs – Manhattan, Brooklyn, Queens and the Bronx. Subsequently, we ranked the largest lenders for each of the following property types – multifamily, office and retail markets. Our data was adjusted to cover total numbers through the end of 2016 and make up for delays in recordings.

Deutsche Bank gets first place, but JPMorgan Chase grants the most loans

The list of largest commercial mortgage lenders in New York this year was dominated by banking giants, with Deutsche Bank leading the pack.  JPMorgan Chase, Wells Fargo and Capital One also feature at the top of the list, while local Signature Bank was the second largest lender by total value of commercial property credit issued in 2016. JPMorgan Chase was the bank with the highest number of individual loans granted – 1,058.

The lenders providing the highest-value loans for large projects were, for the most part, non-bank lenders and international banks: MetLife, AXA, Deutsche Bank, Landesbank Baden-Wurttemberg, Bank of China and Morgan Stanley, but also the HFA. Each of these lenders granted a small number of loans in 2016, but all of them had an average loan size of more than $100 million!

In fact, Deutsche Bank climbed to the top of the ranks with only 54 individual loans issued – compared to 990 by Signature Bank – but offered credit in the sum of $7.55 billion. The single largest mortgage deal, however, was closed by JPMorgan Chase – a whopping $1.2 billion for the Solow office building in Midtown.

Several non-bank institutions had significant market shares this past year, including global insurance giants like MetLife and AXA – the latter having seen a shocking 700% growth in total mortgage value from 2015 – and the New York State HFA.

Two other lenders strongly expanded investment in CRE this year: local Flushing Bank, which doubled its volume this year, and global insurer subsidiary Prudential Insurance Company of America. Ranking at #19 and #20, respectively, the two totaled over $1 billion in loans each, a 191% increase for Prudential.

RankLender
Total value of mortgages in 2016
Number of mortgages in 2016
Total value of mortgages Y-o-Y
1Deutsche Bank
$7,552,070,894
54
25%
2Signature Bank
$6,395,808,142
990
0%
3JP Morgan Chase
$5,888,502,393
1,058
13%
4Wells Fargo
$5,134,564,642
108
13%
5New York Community Bank
$4,141,944,949
523
-39%
6Capital One
$3,260,027,547
317
22%
7MetLife
$2,122,252,426
13

-22%
8M&T Bank
$2,085,306,102
117
-14%
9AXA Equitable Life Insurance Company
$2,068,349,515
13

693%
10Morgan Stanley
$1,984,068,932
10
-13%
11New York State Housing Finance Agency
$1,938,884,775
17
12%
12Bank Of America
$1,921,815,520
84
-62%
13Landesbank Baden-Wurttemberg
$1,487,766,990
6
-17%
14Bank Of China
$1,430,402,041
13
-13%
15Dime Community Bank
$1,323,460,398
354
8%
16Citigroup
$1,277,618,621
17
47%
17Investors Bank
$1,235,954,650
247
-15%
18BankUnited
$1,110,623,325
150
-45%
19Flushing Bank
$1,045,016,821
350
98%
20The Prudential Insurance Company of America
$1,044,927,715
21
191%

 

Here are the lenders that recorded the highest total mortgage value in the multifamily, office and retail sub-markets in 2016.

JPMorgan Chase leads by number of loans in the multifamily sub-market

The most prolific lender was JPMorgan Chase, which issued a total of 833 loans, but only loaned half the amount Signature Bank did. In total volume of credit, Signature Bank was by far the largest lender for multifamily properties, followed by the New York Community Bank. NYCB continues to be one of the most important players in its mortgage niche, though its overall loan volume decreased by 39% from last year.

RankLender
Total value of multifamily mortgages in 2016
Number of multifamily mortgages in 2016
1Signature Bank
$4,557,525,850
699
2New York Community Bank
$3,432,235,218
461
3Capital One
$2,839,876,606
283
4JP Morgan Chase
$2,301,416,706
833
5Deutsche Bank
$1,642,920,232
16
6Wells Fargo
$1,625,635,462
36
7Dime Community Bank
$1,216,326,569
312
8Investors Bank
$905,488,704
185
9Flushing Bank
$856,489,379
203
10BankUnited
$852,981,501
106

Deutsche Bank focused on pricey office buildings

The largest CRE lender in New York financed 19 office properties this year, for a total of $4.85 billion. Meanwhile, JPMorgan Chase closed deals on no less than 80 office buildings, for a total of $2.84 billion – of which $1.2 billion was for the above-mentioned Solow Building.

RankLender
Total value of office mortgages in 2016
Number of office mortgages in 2016
1Deutsche Bank
$4,847,890,479
19
2Wells Fargo
$3,176,576,895
26
3JP Morgan Chase
$2,842,610,392
80
4MetLife Insurance Company
$1,595,533,979
9
5AXA Equitable Life Insurance Company
$1,456,699,029
7
6Morgan Stanley
$1,435,747,573
6
7Landesbank Baden-Wurttemberg
$1,380,582,524
2
8Dekabank
$874,601,942
2
9M&T Bank
$764,580,647
27
10Signature Bank
$709,848,627
63

Bank of America loaned $877M for retail properties

Signature Bank saw the most activity in retail mortgages this year, with a staggering 154 loans granted for an average loan value of about $5.3M. However, Bank of America had the highest loan volume, for a mere 16 properties. The largest loan granted by BofA was in the amount of $138 million for a 26,000 square-foot low-rise brick construction on a corner lot in Chelsea.

RankLender
Total value of retail mortgages in 2016
Number of retail mortgages in 2016
1Bank Of America
$877,169,397
16
2Signature Bank
$817,441,108
154
3M&T Bank
$622,058,643
36
4Deutsche Bank
$554,762,203
6
5Citigroup
$553,689,320
7

For our top retail lenders, we listed the key players totaling over $500 million in loan volume in 2016.


Methodology:

Commercial mortgage data for 2016 included loans and refinances granted for all multifamily, office, retail and industrial properties in the boroughs of Manhattan, Brooklyn, Queens and the Bronx. The figures were compiled in early December and adjusted, based on historical data, to compensate for the lag in filing documents into the public record.

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