Commercial Loan Acquisitions

Commercial Real Estate Loan Acquisitions: What do we do?
ICB has purchased a broad range of loan portfolios as well as larger balance single loans. Although most of ICB's business has been direct contact, ICB has used intermediaries on various occasions. ICB welcomes the added value of a sophisticated intermediary and will protect our broker sources.

Criteria

• Multifamily, industrial, office and retail properties
• Loan amounts up to $10,000,000
• 6 Month LIBOR preferred; however, other indices up to one year may be considered
• Loans secured by income producing properties located in California or the eight western states (CA, AZ, NV, WA, UT, OR, CO, ID)

ICB Competitive Advantages

• Sophisticated due diligence team assures quick response and closing
• Competitive pricing
• Flexibility - Broad range of acquisitions considered
• Structured transactions including senior/subordinated positions, and other mechanisms considered

Acquisition Process
The following is ICB's process for considering and funding commercial loan acquisitions:

Portfolio Acquisitions

• Submit an electronic tape containing key loan data including loan and property specific information.
• ICB's Acquisition Group personnel will approve and issue a bid price for the loan pool.
• Upon written acceptance of a bid letter by the seller, ICB will assemble a due diligence team consisting of loan underwriting and appraisal personnel. ICB will arrange for the team to review the individual loan files on or off-site.
• The portfolio acquisition proposal is submitted to ICB's Loan Committee.
• Upon Loan Committee approval a Purchase & Sale Agreement is negotiated. Concurrently, the Loan Documentation Group reviews the documentation for each loan in the portfolio. This review can occur post closing provided the Purchase & Sale Agreement contains sufficient seller representations and warranties relating to loan documentation.
• The portfolio acquisition is funded.

Single Asset Acquisitions

• Submit an acquisition package which contains detailed information on the loan offered for sale, including offered price and other loan specific information. The package should also include detailed information on the property securing the loan including current operating statements, latest appraisal, engineering and environmental reports, and borrower information.
• ICB personnel will prepare a term sheet outlining the terms and conditions of the proposed acquisition.
• When the term sheet is signed, ICB personnel will underwrite the transaction and submit a loan acquisition proposal to ICB's Loan Committee.
• Upon Loan Committee approval, a Purchase & Sale Agreement will be negotiated and the loan documents will be reviewed by the ICB Loan Documentation Group.
• The loan acquisition is funded.

Commercial Real Estate Loan Sales
ICB frequently sells participations in the loans originated by its Loan Origination Group. When an individual loan exceeds $15,000,000 one or more participants are usually sought to reduce concentration risk for portfolio management purposes.

ICB's Loan Servicing Group manages nearly 1,500 real estate secured loans with a total loan balance greater than 1.2 billion. These loans include construction, acquisition and stabilization loans requiring frequent disbursement of holdbacks. ICB also manages a portfolio of loan participations. ICB's depth of loan servicing experience ensures high quality management of loan participations.

Contacts
For more information about our Commercial Real Estate Acquisitions and Sales services, please contact one of the CRE Acquisitions and Sales staff based in our Glendale branch at 500 North Brand Blvd., Suite 100, Glendale, CA 91203 map & driving directions.

Loan Sales and Participations
Phillip Lombardi
Sr. Managing Director, Chief of Lending Operations
p: (818) 254-2300
f: (818) 254-2321
plombardi@imperialcapitalbank.com

Loan Pool Purchases
Scott Wallace
Managing Director, Finance & Treasury
p: (858) 551-0511
f: (858) 551-3291

Frequently Asked Questions

1. What other loan indices would ICB consider buying?
   Prime, 12 MAT, 6 Month T-Bill, and COFI.
   
   
2. Does ICB purchase loans on a servicing retained basis?
   ICB prefers to buy loans 'servicing released' but will consider 'servicing retained' on a case-by-case basis.
   
   
3. Does ICB purchase loans on special purposes properties?
   ICB does not buy loans on Marinas or 'Energy' properties but will consider other types of special purpose properties on a case-by-case basis.