NEW YORK (
Berkadia Commercial Mortgage
, a commercial real estate firm half owned by
( BRK-B), will provide capital to fund loans that will be packaged into commercial mortgage backed securities (CMBS).
The new product announced Monday will be available starting in 2011. It will fund at least $200 million in CMBS,
Berkadia is a commercial mortgage broker which also services more than $200 billion in commercial mortgages. Its management believes putting up the firm's own money for CMBS deals will give it an edge over other mortgage brokers.
"Berkadia is poised to be the only mortgage banking firm providing proprietary capital for CMBS loans," stated Joseph Franzetti, senior v.p. at Berkadia, in the company press release.
The new issuance market for CMBS, which virtually shut down in 2008 and 2009, has revived somewhat this year. Still, just 29 deals worth less than $16 billion priced this year through Oct. 26, according to
. That compares to 78 deals worth more than $212 billion during the same period in 2007.
Berkadia was formed in late 2009 when Berkshire and
Leucadia National Corp.
, teamed up to buy
Capmark Financial Group
out of bankruptcy.
Written by Dan Freed in New York
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.