ARCS Mortgage Division Sold to California Investors

Strategic Insights -

Prominent California real estate investors, including Howard Levine, the founder of ARCS, and Marshall Ezralow and Gary Leff, have acquired the Multi-Family Division of ARCS Mortgage, Inc. from The Bank of New York Company, Inc. The purchase includes a major national apartment lender under the FNMA DUS and FHMLC "Program Plus" lending programs, with a combined $1.3 billion servicing portfolio covering properties in 25 states across America.

Key Takeaways:

  • The acquisition includes a $1.3 billion servicing portfolio, consisting of FNMA DUS apartment loans and loans from 9 other investors, with over $1 billion of the product being serviced as of year end 1994.
  • The purchaser group, led by Howard Levine, has retained the ARCS name and will operate under the name ARCS Commercial Mortgage Co., L.P.
  • The new firm will maintain its current corporate headquarters in Calabasas, California, and will have loan origination offices in Hoboken, NJ, Chicago, IL, and Calabasas, CA.
  • A staff of 35 experienced employees, mostly from the former ARCS Mortgage, Inc., will oversee the new operations.
  • Leaders in production offices include Jeff Beatty as East Coast production manager and Hal Rose as West Coast production manager, with Neil Freeman joining to lead the Chicago office.
  • The company's planned expansion program aims to further its national presence in the mortgage banking industry.

Statistics:

  • $1.3 billion: combined servicing portfolio value
  • $1 billion: value of FNMA DUS apartment loans serviced as of year end 1994
  • $300 million: value of loans from 9 other investors included in the purchase
  • 25 states: geographic coverage of the servicing portfolio
  • 35: number of experienced employees overseeing the new operations
  • 3: number of loan origination offices located in Hoboken, NJ, Chicago, IL, and Calabasas, CA
  • 25 years: length of experience of Hal Rose, Senior Vice President and West Coast production manager

Sources:

  • /PRNewswire/
  • The Bank of New York Company, Inc.
  • ARCS Mortgage, Inc.
  • Petrulas & Nissman