Executive Interview with Chris LaBianca

Executive Interview with Chris LaBianca
September 17th, 2009 | Author: Dave Jacobs

Christopher LaBianca
President
RCG Longview

Christopher LaBianca joined the RCG Longview series of Real Estate Debt Funds in April of 2008 and serves as the President of their current high yield debt fund RCG Longview Debt Fund IV, L.P. His responsibilities include oversight of the origination, underwriting, closing, servicing and asset management of all fund investments. Since the inception of RCG Longview Debt Fund Series in 1999, the managers, Peter Cohen and Michael Boxer (Ramius Capital Group, LLC),Jeffrey Feil and Jay Anderson (The Feil Organization), Morton Olshan (Mall Properties), and Jon Estreich (Estreich & Company), have originated more than $1.8 billion in real estate mezzanine debt and other related instruments through RCG Longview fund vehicles. The investment strategy of the funds is driven by the collective experience of the managers as owners and operators of real estate. RCG Longview thus differentiates itself from its competition by focusing on opportunities where its experience and operational capabilities add additional value beyond financial structuring. During its ten years in business, RCG Longview has been active in practically every major US real estate market. It has made more than 350 investments secured by over $9 billion of real estate.

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Prior to joining the Fund, Mr. LaBianca spent nearly eight years at Bank of America, most recently serving as a Managing Director and Co-Head of National Originations in the firm’s real Estate Capital Markets group. During his tenure as originations head, the firm consistently ranked among the top three most active contributors to CMBS issues, with total volume in the last four years exceeding $53 billion. Mr. LaBianca was responsible for developing and managing a nationwide network of fully staffed origination offices. Mr. LaBianca personally originated over $8 billion of loans for securitization while at the firm. Prior to Bank of America, Mr. LaBianca spent eight years at the former Chase Manhattan Bank, holding senior management positions in the Real Estate Finance and US Securities divisions.

Mr. LaBianca began his career as an Analyst with The Prudential before receiving his MBA in Finance and Accounting from the Whitman School at Syracuse University. He is a member of the ICSC and is a past Chairman of the Finance Committee for the Real Estate Board of New York. He is also a Trustee and the current Treasurer for the Roseland Education Foundation.

Q: As a company, tell me about the niche you have carved out for yourself and how you feel you are different from the competition. Why do you find this product type more appealing than alternative real estate asset classes?

A: My focus is in the high yield debt business which in today’s credit constrained environment offers us the ability to pursue attractive risk adjusted returns. This is a dramatic shift from just a few years ago when pricing for subordinate debt was driven largely by the way it was being financed and distributed. Today we are able to participate in the capital stack at more conservative levels and still command the type of pricing that was typically associated with equity transactions under the old model.

Q: How did you get your start in the business?

A: I joined Chemical Bank out of business school after the Manufacturers Hanover merger. They subsequently bought Chase Manhattan. I moved on with some of my colleagues to Bank of America. Always on the lending and capital markets side of Real Estate. Most of the relationships you form in this business are a result of the people you work closely with in those early days, and I was fortunate to work with some great people at those institutions.

Q: Real estate is cyclical. In terms of the specific asset classes you look to acquire, where in the cycle do you think we are right now? How long do you think it will take before we are at par again?

A: As a lender, our viewpoint is typically more conservative. Given the aggressive lending that occurred for most of this decade and the volume of loan maturities on the horizon, our feeling is there is more downside in commercial real estate before a meaningful recovery begins to take hold. In any market, opportunities are created and having the capital and the market knowledge to take advantage of them is how we have been positioning ourselves.

Q: Pretend for a second that investors/shareholders and returns don’t matter. Tell me about your dream commercial real estate project and why you would love to do it.

A: I think finding a way to create decent affordable housing for the nation’s growing elderly population on a national scale would be my choice. My mother spent many years managing subsidized public housing projects for the elderly and I grew up witnessing first hand what a difference it made in people’s lives.

Q: What is the hardest challenge you have faced in your career? How did you overcome it?

A: Having spent most of my career involved in the CMBS business, witnessing the dismantling of that industry would have to be the toughest. Fortunately, many of the people who participated in that market are finding a way to stay relevant in providing capital to the commercial real estate industry, either through joining funds or forming new lending platforms to fill the void left by the lack of a securitized financing option.

Q: If you weren’t in real estate, what would you be doing with your life?

A: I was in a band when I was younger but quit during college to focus on my studies. Maybe I would try and get the band back together.

Q: What organizations, charities etc are you a member of? Why are they important to you?

A: I don’t think there are many people reading this who haven’t been affected in some way by Cancer. I try and support initiatives that raise money and awareness for Cancer Research. I’m also on the Board of an Educational Foundation that focuses on raising money to help supplement the budget constraints of our local school system.

Q: You forgot to pay your real estate taxes for the last ten years and “the man” puts you on death row. What’s your last meal?

A: Definitely Italian.

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