12 Brokers Become One

Unlike the large, centrally-controlled corporations that have recently been busy gobbling up local firms, newly formed Q10 Capital LLC is keeping power at the local level so it can carry out the activities required to function efficiently in the commercial financing world, according to company chairman James Murphy.

“Commercial real estate is a fundamentally local endeavor,” said Murphy in a written statement. “Property lives in context of the community it’s in. Unless you’re out there everyday, inspecting property, studying income and expense numbers and talking to developers, it’s simply impossible to fully understand all the subtleties that effect financing in a community.

“Instead of the national powerhouse owning us, we will own it and our vision will be built around preserving the autonomy of the local office and the entrepreneurial spirit that has made each of our members leaders in their markets,” added the executive.

The company’s formation follows acquisitions by large lenders such as Wachovia Bank, which acquired Lend Lease Mortgage Capital Inc. and AMI Capital late last year, as well as NorthMarq Capital Inc., which picked up the commercial mortgage banking and servicing unit of Legg Mason Inc.

After over 10 years of working together in various ventures, the twelve founding Q10 companies built the national infrastructure to streamline operations, reduce operating costs, and invest in technology, said Q10, which announced its launch at a recent commercial mortgage conference.

The Q10 network was reportedly formed by Bonneville Mortgage Co. headquartered in Utah; Daisley Ruff Financial Corp. in Nebraska; Dwyer-Curlett & Co. in Southern California; Essex Financial Group in Colorado; G.S. Wilcox & Co. New Jersey; Keig Financial Corp. in Arizona; Kinghorn, Driver, Hough & Co. in Texas; Mason-McDuffie Financial Corp. in Northern California; National Mortgage Co. in Oregon; New England Reality Resources in Massachusetts; Phillips Realty Capital Corp. in Washington, D.C.; and Realty Mortgage & Investment Co. in New Mexico.

Q10 said it ranks among the top ten commercial loan producers in the nation. It reportedly operates with 110 finance professionals in 19 offices and reports originations of more than $6 billion during the past two years and a servicing portfolio that exceeds $9 billion.

Commercial mortgages in the U.S. were $116 billion during 2003, the Mortgage Bankers Association of America (MBA) reported. Q10 would have placed 18th on the trade group’s servicer rankings for 2003.

According to Murphy, the company has received inquiries from other independents, but is being selective of who gets to join.

“Our culture is built around the highest levels of integrity with an amazing brain trust of talent,” said the former MBA chairman. “We want to keep it that way. We will only be inviting the best of the best to join us.”

Heading Q10 as president and chief operating officer is Paul Mendenhall, a former JP Realty Inc. vice president who has served in the real estate industry for 27 years, the report said.