Ira Zlotowitz joins forces with Customers Bank in a new company GPARENCY – Commercial Observer
Ira Zlotowitz is related to Customer bank As a strategic partner in his new venture that aims to create radical change in the commercial real estate brokerage industry, Commercial Observer can report first.
The old one Eastern Union founder and CEO announced on Monday the official launch of his new company, GPARENCE, which is designed to allow developers to work directly with banks without the need for a broker. Zlotowitz has raised $ 15 million in venture capital for the company with Customers Bank, the first of a dozen banks he says are pledging to be part of the platform.
“We already have 45 banks that want to join the platform alongside Customers Bank, which is one of the strategic avenues as they understand the technology and what can be built and we will start to build it together,” said Zlotowitz in CO. “We are a real revolution because we give banks the means to market themselves directly to customers, without needing someone in the middle. “
Representatives from Customers Bank did not immediately return a request for comment. The West Reading, Pa., Bank had $ 19.6 billion in assets as of June 30, 2021.
The real DeaI first reported Zlotowitz left Eastern Union, the company he founded and of which he was CEO, to start his own business. Abraham Bergman, who has been a managing partner of Eastern Union since its creation in 2001, was appointed the second CEO of the trading brokerage house.
Zlotowitz is targeting 50 banks by the end of the year and plans to launch an app allowing customers to track transactions in the first quarter of 2022, led by a new product manager who will join GPARENCY next month. The company has so far obtained investment commitments from 125 commercial real estate professionals and investors, according to Zlotowitz.
Joining Zlotowitz at Eastern Union’s GPARENCY as Senior Funding Coordinators are Michael wyne and Asher samberg. Wyne was a senior broker at Eastern Union in the role of Capital Market Specialist, while Samberg led the brokerage firm’s banking operations.
“They both come in with equity in the business, which is extremely important because when it comes to that business, the challenge that all tech companies face when trying to revolutionize the space is that they don’t have the connections to get things done ”, Zlotowitz said. “Between me, Michael and Asher, everyone knows they will have exactly the same quality that they used to deal with when we were at Eastern. They get the same thing, just at a different price to start with, and eventually anything that could be digitized will be digitized.
GPARENCE, which currently operates as a remote company, is starting out with around 40 employees, with plans to reach around 70 by the end of the first quarter, according to Zlotowitz.
The new CRE financing model that GPARENCY seeks to spearhead was based on research undertaken by Zlotowitz which showed that only 20% of borrowers exclusively use brokers while 80% wish to work directly with banks. The company charges a flat fee of $ 5,000 per transaction while offering a banking team to underwrite, purchase, and negotiate the condition sheets.
Once the deal is finalized, borrowers will have the option of continuing to work with the bank or with GPARENCY for $ 500 an hour with a 30-hour cap, which Zlotowitz described as a billing model commonly used by banks. lawyers and accountants. Zlotowitz said it will eventually offer long-term plans to clients by providing them with all data and tools directly through a subscription service called LANDSCAPE which provides information about banks and all brokers in real time.
“We will allow banks to market directly on this platform for customers and provide technology for the customer, similar to Robin Hood Where Rocket mortgage“said Zlotowitz, who, before founding Eastern Union, was a partner of Meridian capital. “I’m revolutionizing pricing and the way someone pays a mortgage. ”
Andrew Coen can be reached at [email protected]