NEW YORK CITY-Avison Young’s New York office is marketing 69 non-performing first mortgages secured by single-family residences located primarily in the five boroughs and Long Island, GlobeSt.com has learned. The brokerage is working on behalf of the current lender, a finance unit of a multinational organization, to market the portfolio. It is expected to go for $30 million by fourth quarter 2012, according to Justin R. Piasecki, a principal at Avison Young who is handling the transaction.
“It is the right place and the right time,” he tells GlobeSt.com. “They are looking to own performing loans in their portfolio, and they are not looking to own non-performing. It was the right time for them to sell before the new year and move forward.”
According to AY, all loans were originated between 2003 and 2008, of which, 63 assets are already in the foreclosure process and only six assets are 120+ days delinquent. The majority of portfolio (56.1%) were originated in 2006, and the second largest grouping (28%) were originated in 2007 – just before the housing bubble burst.
Now, given the resurgence in the single-family market and increases in home prices, Piasecki says the portfolio presents an “excellent opportunity” for an investor. “There’s a lot of people who have raised money for single-family non-performing, and also REO,” he says. “There are a number of different groups on the large-scale side that are looking to own properties and rent them out,” noting that private equity giants like the Blackstone Group and others are investing in residential sites. “Home prices have kind of stabilized, and it is a good time in the marketplace to be coming out with this.”
Each asset is being offered individually, and potential investors may submit offers for one asset, or groupings of assets defined by the investor. However, all offers must be broken out on an individual basis. Investors purchasing individual assets or small pools will be required to use the purchase and sale agreement available on AY's website.
In addition to Piasecki, an AY team of VP Aaron Iskowitz and associate Peter Rotchford is marketing the deal.
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