(Carl Cronan is editor of Real Estate Florida.)
WEST PALM BEACH, FL-Carlton Advisory Services Inc. has been appointed to sell off up to $350 million worth of outstanding loan assets on behalf of two major financial institutions. Confidentiality agreements prohibit the firm from disclosing specific information on the properties involved, though Carlton executives say the majority are in Florida.
The larger loan portfolio, totaling $259 million in 39 loans, includes more than $80 million worth of assets along the state's west coast with a strong concentration in the Tampa Bay market. One of the loans is secured by at least 500 acres of fully and partially developed prime land lots near the Gulf of Mexico.
Other properties in this portfolio are in Nevada, California, Louisiana, Mississippi, Alabama and Georgia. Loans assets also include a 400-unit multifamily complex in New Orleans, an 80-room hotel in Mississippi, a two-story retail building in Reno, NV and a 54-unit lakefront condominium development in suburban Atlanta. Approximately $16 million of REO assets in five properties are part of the package.
The second loan portfolio, totaling $91 million in 20 loans, is secured by properties in southern and western Florida, as well as South Carolina and North Carolina. They include a prime beachfront land parcel in Florida, six prime Gulf Coast residential lots and a large land parcel for office condo use in Fort Lauderdale.
Sealed bids will be accepted on the larger portfolio, which is expected to generate interest from a broad range of prospective investors, says Thomas McCarthy, managing director of Carlton's office in Palm Beach Gardens. Bidders may range from hedge and opportunity funds to commercial developers who were able to sell ahead of the property market decline.
"There is more money chasing these deals than most people realize," McCarthy tells GlobeSt.com. He adds that investors located in the specific locations of the loan assets, who know the local markets best, will likely fare better than generalists seeking distressed properties.
Bids for both portfolios are being accepted until Dec. 3. Carlton Advisory Services, a division of New York City-based Carlton Group, has completed more than $45 billion in transactions over the past decade, of which $10 billion were sealed-bid auctions.
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