Capmark Financial Group has completed a financial restructuring designed to keep the wolves away from its door for another year or two. But the troubled Horsham, Pa.-based lender is bleeding staff and shutting down offices as it aggressively downsizes to ride through its financial storm.

Many of Capmark's originators in major markets are fleeing. Northmarq recently hired four former top Capmark producers in San Diego: Eric Flyckt, Steve Hollister, Mike Dobbins, and Doug Austin. And in May, Capmark’s Seattle office became a Northmarq regional office.

The buzz on the street is that Capmark’s Atlanta office recently laid off a sizable chunk of its staff, and that the company’s Dallas offices are also thinning rapidly and may soon be absorbed by another firm, possibly Northmarq. Sources also tell APARTMENT FINANCE TODAY that the company’s producers are working on a deferred compensation plan, and most are biding their time, hoping to get paid for deals in process or already done.

In late May, Capmark, the multifamily industry’s top Freddie Mac and FHA lender in 2008, entered into a new $1.5 billion term loan facility and amended its senior credit and bridge loan agreements. The maturity date of the facility is March 23, 2011, but may be accelerated to April 2010 if the senior notes due next year are not repaid or redeemed, exchanged, refinanced, or extended beyond June 30, 2011.

Industry watchers see this as a sign that the company’s creditors believe Capmark will be able to get through the next year or two. If not, the refinancing at least allows Capmark to keep its core business units together, thereby maximizing the value for a potential sale. Indeed, many in the industry see a lot of value in Capmark’s huge debt servicing portfolio. But many question if a potential suitor can be found in today’s economy.

Capmark has also begun to sell off parts of its non-core business. On June 9, the company sold its European loan administration, asset management administration, and CMBS administration services to U.K.-based Capita Group for $16.5 million. The sales combined Capmark Services Ireland, Capmark Services UK, and Capmark Asset Management, collectively known as Capmark Services Europe. The 110 Capmark employees in those units will be integrated into Capita’s Fiduciary Group.

[NOTE: This is an update correcting an earlier error. The original article said that the company had closed its Washington D.C. office. While Capmark no longer has an office in Washington D.C., the company does continue to serve the D.C. market from its McLean, Va. office. APARTMENT FINANCE TODAY regrets the confusion.]