Astoria Financial Corp.’s multifamily and commercial business will be staying the course following the retirement of Gary M. Honstedt, who
Honstedt held the title of executive vice president at the holding company level and EVP and managing director of the multifamily/commercial real estate services group at the thrift level. As of July 1, he is a consultant and will receive $475,000 annually through Dec. 31, 2015, according to an 8-K filing obtained through DisclosureNet.com.
The multifamily/CRE business has been a success for Astoria at a time when the portfolio residential lending business has been restricted by the low interest rate environment.
Redman said this has been in the company’s plans since Honstedt had joined Astoria from his previous position as president of the National Commercial Real Estate Division at Sovereign Bank; he also served as executive vice president of Brooklyn-based Independence Community Bank, which Sovereign acquired in 2006.
Matt Gutauskas, who was part of the Independence/Sovereign team that came over with Honstedt, is the new managing director, Redman noted. Therefore, the company will be staying the course. Its multifamily program is concentrated in lending in the New York metropolitan area.
Keeping Honstedt as a consultant, with his connections in both the real estate broker and owner communities, is an important part of those plans.
At the time he joined Astoria, the bust had made the multifamily/CRE business there moribund. In 2008, it originated $514.2 million and in 1Q09 it did $11.5 million.
Redman said before the bust, Astoria had a good team in place that did about $1 billion a year. When it hired Honstedt, it got a great team to bring back that business, with Redman adding the instructions to Honstedt was that Astoria wanted to be a player in multifamily and commercial.
In the company’s
Just as importantly, the 2012 production had a 1.81% average debt coverage ratio and a 53% loan-to-value ratio.
Volume in 2013 looks similar to what it was for 2012, Redman said.
