HFF Maximizes Proceeds on $105.4M Sale of Small-Balance Loan Pools to Individual Investors
- Mar 09, 2010
Chicago, Ill.–HFF (Holliday Fenoglio Fowler LP) completed the sale of two small-balance commercial real estate loan pools totaling $105.4 million on behalf of a special servicer and a money-center bank.
HFF Managing Director Bill Mitchell and Senior Managing Director Stuart Salins in Chicago represented the sellers in the transaction.
The two portfolios were marketed separately and include 95 loans in 25 states. Rather than offering and then selling the loans to investors on a “bulk” or portfolio basis, which is typical in the industry for such type of loans, HFF instead was able to tap into its investment sales database and target local, strategic buyers willing to aggressively bid on individual assets.
In total, more than 600 confidentiality agreements were executed. The assets offered were sold in 26 different transactions to 18 different local and regional buyers.
“In all, HFF’s unique approach netted 20 to 25 percent more in sales proceeds with fewer kick-out than had HFF sold the loans in aggregate to traditional large-portfolio bidders,” said Mitchell.