Closing Through COVID: Meridian’s Drew Anderman Tells the Financing Side of the Story

How are the different divisions of Meridian Capital Group faring these days? Recently, members of the investment sales team reported a strong deal pipeline and numerous closings since COVID-19 hit in March. Drew Anderman, a senior managing director in the firm’s mortgage brokerage division, also relayed a positive report: Since the onset of the pandemic, his team has been staying busy and closing deals.

Team cohesion

Anderman attributes a large part of the team’s recent success to increased collaboration, both while they were working remotely and since their return to the office at the end of June. In the initial months of the pandemic, when everyone was working from home, the team held calls twice a day to discuss the status of their deals in process and to share ideas.

That said, collaboration became easier in June when the team returned to the office. “We’ve always valued our strong working relationships,” Anderman said. “But the pandemic increased our reliance on, and appreciation of, one another.”

Ongoing outreach to clients

The team’s emphasis on collaboration extended beyond colleagues. “During New York [State] on PAUSE, we would set up recurring phone calls with clients and prospects,” recalled Anderman. “It was important to us to stay in touch, to find out how they were doing, and to exchange ideas. And once New York City started reopening, we began arranging face-to-face meetings over lunches and dinners with locally-based clients.”

Anderman stressed that dialogue must be ongoing, regardless of market conditions. “We see the role of a broker as encompassing much more than dotting the i’s and crossing the t’s,” he explained. “The role is that of a trusted advisor who interacts with clients, not only when deals are in progress, but also when they aren’t.”

The clients, in turn, appreciate the nonstop approach. In some cases, the result is an unanticipated deal. For example, the team recently placed two self-storage transactions — an acquisition and a refinance — in the New York City area. The lender was a debt fund that had not been active for several months. “Since we’d kept in regular touch with the key people at the fund throughout the pandemic, we knew that they were keen to get back into the market, and we had a solid idea of what they were looking for,” said Anderman. “So, when we found ourselves with two good opportunities that required a quick turnaround, we knew exactly where to go. And the deals closed within 40 days.”

Patience

Anderman echoed the sentiments of his colleagues in investment sales, who underscored the need for patience during the pandemic. “There is so much uncertainty now and, with the election coming soon, it’s intensifying,” he said. “Consequently, lenders have stricter reserve requirements, and deals are taking longer to structure.”

Patience came in handy with several HUD transactions that were in progress before the pandemic hit. “COVID turned everything upside down,” Anderman recanted. “Bringing the deals to conclusion took a lot of extra time and effort. “The delays did have an upside though: they closed at interest rates that were far better than the team had originally foreseen — in the 2.5% to 2.8% coupon range for a 35-year term, which Anderman described as “amazing.”

Future orientation

“Deals will continue to get done during the pandemic and after the pandemic,” Anderman said. “Yes, 2021 will be choppy and turbulent, and people will exercise caution in investing. But, at the same time, bear in mind that there is a lot of capital waiting on the sidelines. And rates are incredibly low. In short, opportunities might be less obvious, but they still exist. Our recent deals attest to that. We’re keeping our eyes on the future, when the pandemic will pass; the market will readjust, and we’ll look back on this period as a learning experience and an opportunity.

“In a sense, our role is more important than ever. When market conditions are good, brokers can get by more easily, as deal flow is plentiful. That’s never been our style. We’ve always prioritized strategic navigation of the market over quick and easy transactions. That’s how we’re managing to weather the challenges of today. Challenges that, let’s not forget, won’t stick around forever.”

Drew Anderman can be reached at danderman@meridiancapital.com or 212-612-0236.