The uncertain climate is stirring more lenders to harvest their notes in the expanding secondary market, according to DebtX CEO J. Kingsley Greenland II. Founded in 2000, DebtX is seeing "significantly more" activity than normal, he tells GlobeSt.com. "There's more downside that upside right now," he relays, explaining such turmoil often leads lenders to forgo "asset gathering" and focus on stabilizing a portfolio. Concentrated on the southeastern US, the loans assembled by DebtX run the gamut in quality, from non-performing and sub-performing to those that are up to date. The remaining three sales will each be around $100 million, says Greenland, with bidding for later traunches overlapping the completion of earlier rounds. Bidders will be allowed to pursue both individual and pools of loans.

The initiative involves more than 200 lending relationships, and the loans are secured by land as well as commercial and residential properties. There is not, however, an over-concentration of multifamily in the portfolio, says Greenland, despite that market's continued difficulties in Florida and Texas and the anticipated availability of debt deals from that area. Loans in the DebtX stack are backed by assets in Atlanta, Orlando and south Florida, and range in size up to $20 million.

DebtX says lenders increasingly seek to avoid the onerous loan workout route and Greenland says he believes the most efficient way to maximize value is via a bulk offering. Certain buyers might be willing to pay more for a series of similar loans than individuals would for each note, he says. "And we are working for the seller," he stresses. Greenland is also unabashedly supportive of the firm's Internet platform to spread the word about the loans, insisting it benefits both sides of the aisle.