The U.S. commercial real estate market has grown substantially since 2000. According to Real Capital Analytics, commercial real estate sales volume has increased from $76.4 billion in 2001 to $274.9 billion in 2005. More recently, for the first three quarters of 2006, real estate sales volume totaled $210.8 billion, an increase of 5% over the same period in 2005.

Increased allocations by pension funds, endowments, life insurers and other primary asset allocators, as well as increased investment from private equity funds and wealthy individuals, have increased the amount of capital committed to the commercial real estate market. According to Kingsley Associates and Institutional Real Estate, Inc., new allocations in 2006 to U.S. real estate assets are expected to reach $59 billion, 16% more than the new allocations in 2005 of $51 billion, which was an increase of 16% from allocations in 2004 of $44 billion.

The availability of debt financing has also been a significant contributor to the robust U.S. commercial real estate market. According to the Mortgage Bankers Association, commercial and multifamily real estate loan originations totaled $201.7 billion in 2005, a 48% increase over 2004 originations of $136 billion.

Originations in the first half of 2006 increased 24% over the same period in 2005. A significant contributor to this growth is investment banks’ and commercial banks’ so-called “conduit” platforms, which originate loans for sale into the commercial mortgage backed securities (“CMBS”) market as well as collateralized debt obligations (“CDO’s”) and other instruments.

Many fixed income portfolio investors have found CMBS an attractive alternative to other fixed income investments such as rated and unrated corporate bonds. According to Commercial Mortgage Alert, U.S. CMBS issuance increased to $169 billion in 2005, an 82% increase over 2004, and global CMBS issuance increased to $239 billion in 2005, an 86% increase over 2004.

The Company offers a complete range of debt instruments, including but not limited to construction and construction/mini-permanent loans, adjustable and fixed rate mortgages, entity level debt, mezzanine debt, forward delivery loans, tax exempt financing, and sale/leaseback financing.

The Company’s clients are owners of various types of property, including, but not limited to, office, retail, industrial, hotel, multi-family, self-storage, assisted living, nursing homes, condominium conversions, mixed-use properties and land.

The Company provides investment sales services to commercial real estate owners who are seeking to sell one or more properties or property interests.

The Company offers a wide array of structured finance alternatives and solutions at both the property and ownership entity level.

Through its broker-dealer subsidiary, the Company offers its clients the ability to access the private equity markets for an identified commercial real estate asset and discretionary and non-discretionary joint ventures, funds marketing, private equity placements, and advisory services.

The Company provides commercial loan servicing (primary and sub-servicing) for life insurance companies and CMBS originators.

Total operating expenses were $123.3 million for the nine months ended September 30, 2006 compared to $108.3 million for the same period in 2005, an increase of $15.0 million, or 13.8%.

Net income for the nine months ended September 30, 2006 was $31.7 million, an increase of $2.7 million, or 9.3%, versus $29.0 million for the same fiscal period in 2005.