In terms of dollars, that means about $136 million of the$307-million pool is retail, such as a 471,444-square-foot enclosedregional mall in Texas, and McCarthy says the entire pool isdominated by assets that are up and running. "In any bankportfolio, you might find a healthier mix of broken condominiumloans and REO, as well as development and land transactions," hesays. "Whereas this sale is almost all vertical assets." He addsthat there will probably be more vertical assets coming up for salethan there have been previously.

Most of the assets--which also include about $88 million ofmultifamily--are generating positive cash flow, although perhapsnot to the degree they were before, McCarthy says. "They run across-section from no duress to where the occupancy and rent rollsare down and they're struggling." Not surprisingly, there's anemphasis on assets in states "hit a little harder than others" bythe recession, including Michigan and Ohio, although some fromhealthier markets such as Texas and New York.

"We've got a very strong interest in this sale," says McCarthy.He explains that the most competitive bidders tend to be "nationalplayers with a domain expertise for the collateral type. Somebodywho's a great operator of retail or multifamily, for example, asopposed to a generalist in every property type. And they have avery evolved exit plan for the asset."