Wells Fargo & Company announced on Wednesday the formation of a commercial real estate investment trust (REIT) finance group.
The group will consolidate services including corporate banking, lines of credit, term loans and construction loans. Wells Fargo will also partner with its affiliate Eastdil Secured, the powerhouse commercial real estate brokerage whose recent deals include the sale of Taconic Investment Partners LLC's 111 Eighth Avenue in Manhattan to Google for $1.8 billion.
Rex Rudy, previously Wells' managing director of real estate syndicated finance, will be the managing director and head of the group. The REIT finance group will have offices in Charlotte, Chicago and Los Angeles.
This new team will further enhance our ability to provide our broad platform of commercial real estate products and services to REITs, said Chip Fedalen, executive vice president and head of Wells Fargo Commercial Real Estate Institutional and Metro Markets Group, in a statement.
REITs, publicly traded property landlords specializing in office, retail, residential, institutional or mixed portfolios, have recovered following the real estate crash.
A majority of REITs beat third quarter earning predictions, according to analysis of 56 companies from Keefe, Bruyette & Woods, although concerns remain over debt and the overall economy. Brookfield Office Properties, General Growth Properties and AvalonBay were among the REITs that recently posted quarterly gains.