Mission Seeks Bids on $221M Portfolio

NEW YORK CITY-Mission Capital Advisors, based here, has begun soliciting indicative bids on a $221.4-million portfolio of loans and REOs for a regional bank, secured by real estate assets in Florida and six other states. It’s the newest of three debt portfolios Mission Capital has been marketing this quarter, with a combined balance “north of $600 million,” the company’s Will Sledge tells GlobeSt.com.

“Relative to our asset sales last year at this time, we have two to three times the amount of debt in the market,” says Sledge, executive managing director at Mission Capital. “We do see an uptick in the need for services like ours. It’s likely that over the next couple of weeks, we’ll be engaged to market other portfolios on behalf of other institutional clients.”

Part of the anticipated uptick in large portfolios is due to the normal cycle of banks getting assets off their balance sheets, and part of it is due to the current state of the market. “Because of the slow movement on the REO side and in the true real estate market, the debt business as a means to move collateral off balance sheets is one of the only games in town now,” Sledge says. “It’s also a very quick process. Whereas the real estate market may take months if not a year to move a piece of real estate, on the debt market it’s generally a period of weeks.” On this portfolio, for example, final bids are due March 18, with a closing date of March 25.