Dealmakers catch Remic wave. (refinanciing National Realty L.P. through real estate mortgage investment conduits)

Former Southmark execs refinance $207 million debt with mortgage security analysts say is catching on fast

Dallas real estate investors Gene Phillips and Bill Friedman went to Wall Street last month to refinance Dallas-based National Realty L.P.'s $207 million debt.

To sell $223 million in mortgage-backed securities, the former Southmark Corp. executives used a type of financing known as a "Remic" -- real estate mortgage investment conduit. Sold through Donaldson Lufkin & Jenrette, the securities were backed by 52 apartment complexes National Realty owns around the country.

It was a move that could be a harbinger of a slew of similar deals across the real estate industry, analysts say.

Securities backed by home mortgages have been used to raise capital since the 1970s. But only since the Resolution Trust Corp. began …