WOODBRIDGE, NJ-Helios Capital Advisors announced that the company has sold and closed on a non-performing commercial loan portfolio for Investors Bank totaling approximately $23 million, according to Helios CEO Steven M. Schultz. The portfolio consists of 26 individual loans secured by various asset types throughout the New Jersey market.
Helios was engaged as an exclusive advisor to Investors Bank and closed the deal with a New York-based fund investor and a local New Jersey operator. Helios widely marketed the pool and used a controlled sale to market the portfolio. There were two rounds of bidding; an indicative and final best bid, and Helios was able to close the transaction within a 90-day period.
"It was good for the bank to get rid of the nonperforming loans," says Schultz.
The portfolio included a mixture of loans on land and various asset types, including residential. Business should only increase as banks look to remove similar loans from their balance sheets. Investor interest in acquiring nonperforming loans has increased, Schultz notes, with this package receiving more than 20 bids. The result should be growing business as the year continues.
“Banks are looking to sell and some money is now chasing these [investments],” Schultz adds.
The bank is happy, as well.
"The entire process went smoothly due to the expert coordination of our credit group and Helios," says Kevin Cummings, CEO of Investors Bank, in the announcement. "This is the second transaction we've worked on with Helios; both have been executed in a timely and professional fashion and we are pleased with the outcome."
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