BETHESDA, MD-Appetite appears to be strong for troubled real estate assets as investors scramble to bid for CWCapital Asset Management LLC’s latest round of non-performing commercial mortgage loans.
The company recently marketed 134 assets with an unpaid principal balance of $3.43 billion. It is expecting to realize $0.66 on the dollar for the aggregate unpaid principal balance, or $2.26 billion.
CWCapital has sold 110 of 112 assets through CBRE and Auction.com, with the remaining 12 expected to close no later than mid-March.
The assets that were marketed through CBRE received more than 730 signed confidentiality agreements, resulting in 153 bidding entities and more than 930 bids on 63 assets offered and 62 assets sold.
The assets marketed through Auction.com received more than 5,000 signed confidentiality agreements from interested buyers, resulting approximately 244 bidding entities and over 1,130 bids on 71 assets offered and 60 assets sold.
CWCAM says it will report asset-level details on these transactions in the coming weeks.
If the results of its most recent auction of non-performing assets are any indicator, the current auction’s results will tell a story of ongoing demand for real estate assets-especially those offered at a discount-as property values continue to recover.
Four months ago, CWCapital put some $2.57 billion of unpaid loan balance on the market, an auction that resulted in Blackstone Group, Starwood Capital Group and CIM Group vying for offices and retail centers in a number of states.
Earlier this month the CIM Group reported it purchased a seven-asset portfolio of office, retail and hotel properties that included Two California Plaza and Montclair Plaza in the greater Los Angeles area.
Starwood Capital, for its part, purchased a pool of 11 office and retail properties from the sale for $191 million.