The uncertain climate is stirring more lenders to harvest theirnotes in the expanding secondary market, according to DebtX CEO J.Kingsley Greenland II. Founded in 2000, DebtX is seeing"significantly more" activity than normal, he tells GlobeSt.com."There's more downside that upside right now," he relays,explaining such turmoil often leads lenders to forgo "assetgathering" and focus on stabilizing a portfolio. Concentrated onthe southeastern US, the loans assembled by DebtX run the gamut inquality, from non-performing and sub-performing to those that areup to date. The remaining three sales will each be around $100million, says Greenland, with bidding for later traunchesoverlapping the completion of earlier rounds. Bidders will beallowed to pursue both individual and pools of loans.

The initiative involves more than 200 lending relationships, andthe loans are secured by land as well as commercial and residentialproperties. There is not, however, an over-concentration ofmultifamily in the portfolio, says Greenland, despite that market'scontinued difficulties in Florida and Texas and the anticipatedavailability of debt deals from that area. Loans in the DebtX stackare backed by assets in Atlanta, Orlando and south Florida, andrange in size up to $20 million.

DebtX says lenders increasingly seek to avoid the onerous loanworkout route and Greenland says he believes the most efficient wayto maximize value is via a bulk offering. Certain buyers might bewilling to pay more for a series of similar loans than individualswould for each note, he says. "And we are working for the seller,"he stresses. Greenland is also unabashedly supportive of the firm'sInternet platform to spread the word about the loans, insisting itbenefits both sides of the aisle.