After abandoning residential mortgage lending four years ago, CIT Group Inc. is back in the business. But this time around, the company is lending on commercial real estate.
In August 2007, as the mortgage meltdown was in full swing, CIT Group Inc. announced plans to shut down its home loan origination business — a move that impacted 550 people.
The decision was made to move available resources to businesses with a higher return.
The exit likely better prepared the firm for the global financial crisis that peaked the following year.
But now the New York-based company is wading back into the water.
A news release Wednesday indicated that the company has launched CIT Real Estate Finance.
However, the new unit is financing commercial real estate.
Loans will be originated on properties in Boston, New York and Washington, D.C.
Matthew E. Galligan is the executive vice president in charge of CIT Real Estate Finance. He reports directly to CIT Group Inc. President Nelson J. Chai.
“CIT Real Estate Finance will offer commercial real estate loans to top tier sponsors and developers in major cities we know well,” Galligan stated in the announcement. “We will provide stabilized, value-add and construction loans in excess of $20 million to highly experienced and well-capitalized developers in the office, retail, industrial and multi-family rental sectors.”
Other executives appointed to the CRE lending unit include Managing Director Meggan Walsh and Director Christopher Niederpruem.
