Noting an increase in volume recently of distressed assets coming to market, Howard L. Michaels, chairman of Carlton, tells GlobeSt.com, "What is happening is that the banks are becoming more serious with respect to selling the assets and to selling them at prices that make sense." Up until now, Michaels says, the bid-ask gap was an issue; in addition, "banks were reluctant to sell until they got their arms around the assets. Also, banks have begun to make some profits, so they have the ability to take the losses on some of the assets. It's really a confluence of factors."
Largest of the three new pools is a $277-million assortment of small-balance commercial loans, many backed by properties with cash flow. They're located in New York, Florida, Massachusetts, California, New Jersey and Illinois, and bidders have the option of bidding on pools of the assets.
"There are small pools and big pools, so this really appeals to a cross section of investors," Michaels says. The assets are being offered on a sealed-bid basis with an initial bid date of Dec. 16 and final bids due two days later.
Most recently, Carlton was retained by a major financial institution to market a $58-million portfolio of 21 loans and two REO properties. All of the properties are located in or around Myrtle Beach, SC, and include approximately 80 multifamily units in a prime condominium/hotel resort located on the beach, a 105-unit mixed-use hospitality/condominium property and a 21-unit office complex. Bids are due Dec. 21.
Additionally, Carlton has been retained by two undisclosed Mexican financial institutions to conduct a sealed-bid loan and REO sale of over $46 million of condominium and detached SFR construction loans, performing and nonperforming SFR mortgages and REOs, located throughout Mexico. "Even though Mexican financial institutions maintained strong lending standards while US standards deteriorated, the weakening Mexican economy is forcing many financial institutions to begin deleveraging," says Farzin Emrani, managing director at Carlton's Los Angeles office, in a release. Indicative bids are due Dec. 11.
Commenting on the diversity of asset and loan types being marketed in these portfolios, Michaels says, "The banks have a potpourri of assets. If you just look at what we're selling, there's a real variety. We have hotels, apartments, broken condo projects, retail and office. The banks made a lot of loans, and as everyone knows, there's a repricing of the commercial real estate industry, so this is a fabulous time for investors to take advantage of some of the opportunities that are out there."
For more information, visit www.carltonexchange.com.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
