INSIDE THE DEAL: HFF Arranges Sale of Performing Loans

By Keat Foong, Executive Editor Chicago—Some developers are contemplating getting ready for the purchase of distressed loans. Here is an example of a sale transaction of performing loans. The Loan Sales group of HFF (Holliday Fenoglio Fowler LP) completed the sale of four performing first mortgage commercial loans for $31 million on behalf of Nationwide Life Insurance Co. HFF Senior Managing Director Stuart Salins and Associate Director Thomas Gerfin represented the seller in the transaction. The four loans range in size from about $3.95 million to $10 million, with an aggregate face amount of approximately $31 million. The loans were sold to two institutional investors and pricing ranged between a modest discount to a slight premium, said the company. The loans are secured by retail centers and multifamily properties located in Massachusetts, Pennsylvania and Utah. Purchasers of well-performing loans tend to be institutions or financial institutions that want to, for example, add to their production levels, Salins tells MHN. (Click here for more information on the sale of distressed loans.)Salins said there was strong interest among prospective buyers for the portfolio of loans. There is a flight to quality in the performing loans market, and the investors are interested in buying well-performing, low-leverage loans, he notes. “The loans are well-performing and the sale was motivated by a desire of the seller to slightly rebalance its portfolio,” said Salins