Stephen Edward Samuelian Says Reemergence of CMBS Lenders Is a Good Sign

A commercial mortgage-backed security (CMBS) is a type of mortgage-backed security, explains Stephen Edward Samuelian.  “Commercial mortgage-backed securities,” states Stephen Edward Samuelian, “are backed by commercial real estate instead of residential real estate.” And recently, according to Stephen Edward Samuelian, CMBS lenders are reemerging.

Stephen Edward Samuelian has worked in real estate development and construction since the age of 19.  Stephen Edward Samuelian previously served as President and CEO of Sacon Constructors Incorporated, Emerald Development Inc., and Medcon Inc.  Among Stephen Edward Samuelian’s numerous accomplishments is the building of numerous hotel properties for large named corporate hotel chains including Travel Lodge, Marriot, Holiday Corporation, Radisson, and Embassy Suites.  As well, Stephen Edward Samuelian has provided constructions services for acute hospitals and apartment buildings.

According to Stephen Edward Samuelian, there has been a return and emergence of nearly a dozen CMBS lenders.  “Competition is beginning to grow among capital providers who desire to have their money work for them,” notes Stephen Edward Samuelian.  So while few investors are able to benefit from the capital markets that are improving, there are positive signs in addition to the growth in CMBS lenders of economic turn around in these areas, says Stephen Edward Samuelian.

First, according to Stephen Edward Samuelian, interest rates are at all-time lows.  There is no clear sign of how long interest rates will remain at their current level, acknowledges Stephen Edward Samuelian, but the low interest rates are spurning activity.

Secondly, underwriting parameters have begun to loosen again, reports Stephen Edward Samuelian.  Following the economic melt down of 2007, financial institutions fearing the idea of greater financial loss tightened the parameters about the risk surrounding underwriting.

Stephen Edward Samuelian maintains that the commercial real estate market is on a turn around.  “However, few investors,” adds Stephen Edward Samuelian, “have been able to take full advantage of the improving capital markets.”  Stephen Edward Samuelian states that he feels as thought he might have an advantage over others in the middle of this commercial real estate market turn around.  “I live in southern California, which I love for many reasons,” says Stephen Edward Samuelian.  According to Stephen Edward Samuelian, southern California is a great location with a superior standard of construction quality.

Stephen Edward Samuelian can be contacted at stephen.samuelian@gmail.com.

About Stephen Edward Samuelian

Stephen Edward Samuelian is a founding partner of Life Generations Healthcare as well as one of four founding partners of Covenant Care Inc. Stephen Edward Samuelian has served as President and CEO of Sacon Constructors Inc., Medcon Inc., and Emerald Development Inc. In addition, Stephen Edward Samuelian is manager of the Samuelian Family Trust and President of The Perfect Moment Foundation.

As a native of California, Stephen Edward Samuelian acquired his California Contractors license at the age of 19 and began construction operations with the construction of retail stores, offices, restaurants and healthcare facilities. While involved in building a restaurant and lobby of an Embassy Suites Hotel, he met Robert E. Woolley. Mr. Woolley, a highly successful hotel entrepreneur, has been widely acknowledged as a pioneering and industry-leading proponent in the all-suite hotel business. In time, the relationship with Mr. Woolley developed into hotel construction projects for many owners and operators. As the principal of Sacon Constructors Inc., Stephen Edward Samuelian built properties for Marriott, Radisson, Embassy Suites, Holiday Corp. and Travel Lodge. Though Sacon Constructors Inc., Stephen Edward Samuelian also built approximately 3 million square feet of commercial, retail and industrial space.

As President and CEO of Medcon Inc., Stephen Edward Samuelian concentrated on construction services for acute hospitals and specialty medical construction projects such as radiological and surgical facilities. As President and CEO of Emerald Development Inc., Stephen Edward Samuelian focused on real estate development and ownership opportunities that constructed apartments and tilt-up industrial buildings for Emerald’s own account.

Through his medical construction services, Stephen Edward Samuelian saw the growth potential of the skilled nursing business and moved forward as a founding partner of Covenant Care Inc.—a skilled nursing business that grew to 45 facilities in 6 years. With remarkable success in this business, Stephen Edward Samuelian later co-founded and launched Generations Healthcare, a company that owns and operates nursing and rehabilitation facilities.

Currently, Stephen Edward Samuelian serves on several corporate Boards and is the Chairman of The Perfect Moment Foundation. Stephen Edward Samuelian also serves as the Chairman of Care for Life, a non-profit organization that promotes self reliance, health, education and micro credit for the poorest of the poor in Mozambique, Africa. Additionally, Stephen Edward Samuelian is a member of the board of directors for Rising Star Outreach that assists in eliminating the stigma of the leprosy-affected in India.

Married to Susan Samuelian for 30 years, Stephen Edward Samuelian and his wife are the parents of four adult children and 3 grandchildren. The Samuelians reside in Laguna Beach, California.

Stephen Edward Samuelian can be contacted at stephen.samuelian@gmail.com.

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10 Responses

02.14.11

My question is for Stephen Edward Samuelian. I am curious as to why, now, commercial backed mortgage security loans are becoming more popular?

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Stephen Edward Samuelian mentioned that competition was beginning to grow among capital providers. What happens when there are more than just a few dozen lenders on the market?

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Why do lower interest rates trigger activity on CBMSs?

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As with any other financial transaction market, I think the competition will become even stronger. Interest rates will hopefully continue to stay low and encourage lenders to add CMBSs to their financial offerings. I think that anytime you have competition in an industry everyone benefits. – Stephen Edward Samuelian

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I think it’s because people are beginning to see new opportunities to utilize capital to create further business investments. – Stephen Edward Samuelian

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Any time an investor or businessmen can pay less for a business transaction that will encourage them to go forward with that particular transaction. – Stephen Edward Samuelian

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How does construction quality play a role in the willingness of lenders to provide money to commercial investors? Do you, Stephen Edward Samuelian, believe that quality does play a role?

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Like with any other type of lending activity, when you have a stronger piece of collateral, there is less risk for the lender. Think about a title loan company for a moment. These lenders are ones that offer money to people with poor credit with the caveat that they must put up some form of collateral. In this case, it is their car title. The better the car, the more the lender can afford to loan because they have a better chance of recouping their losses should they need to take possession of the vehicle. – Stephen Edward Samuelian

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02.14.11

Stephen Edward Samuelian, you mentioned that Southern California has superior construction standards. Can you explain that?

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Historically, California has held their real estate developers and construction professionals to extremely high standards where building integrity is concerned. This is in-part due to the population density of the metropolitan areas and also because of the risk of earthquakes along major fault lines. – Stephen Edward Samuelian

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