Goldman Said to Hire JPMorgan’s Strain for Real Estate FinanceSarah Mulholland
Goldman Sachs Group Inc. hired Jonathan Strain as a managing director in its commercial-mortgage bond business, according to two people familiar with the move.
Strain, previously at JPMorgan Chase & Co., will be co-head of the U.S. real estate finance group alongside Ted Borter, said one of the people, who asked not to be identified because the move hasn’t been announced. He will be based at the lender’s New York headquarters.
Goldman Sachs is bolstering the team that underwrites bond deals linked to everything from skyscrapers to strip malls as Wall Street banks vie for the most lucrative lending assignments amid growing competition. The number of firms originating property loans to be packaged into securities has almost tripled to 27 since issuance revived in 2010 following the financial crisis, according to Standard & Poor’s.
Strain, who started at JPMorgan in 2007, is joining Goldman Sachs after the departure earlier this year of Dan Bennett, who held a similar position. Justin Perras, a spokesman for JPMorgan, and Michael DuVally, a Goldman Sachs spokesman, said they couldn’t comment.
Issuance of commercial-mortgage backed securities is falling short of predictions of a banner year, pushing underwriters to be more aggressive to meet their origination goals. Banks have arranged about $25 billion of CMBS this year, according to data compiled by Bloomberg, on track to disappoint Wall Street forecasts for as much as $100 billion in 2014 issuance after sales doubled to $80 billion in 2013.
Goldman Sachs was the fourth-ranked underwriter of U.S. CMBS last year, according to industry newsletter Commercial Mortgage Alert. JPMorgan was second, behind top-ranked Deutsche Bank AG.