"We've sold a lot of assets for them successfully over the last12 months," David Tobin, Mission Capital president, tellsGlobeSt.com. The loans are secured by a few of the food groups andtotal 4.6 million square feet, spread throughout the US. Theproperties are located in: Arizona, California, Colorado, Florida,Georgia, Idaho, Illinois, Ohio, Maryland, Michigan, Minnesota, NewJersey, New York, Nevada, North Carolina, South Carolina, Texas,Washington and Wisconsin. The properties are a mix of office,retail, industrial, medical office and mixed-use.

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Some of the markets do seem to be loosening up, as Voit recentlywas picked to market a 12-asset portfolio in Northern California.Tobin indicates that pricing has been getting better and some ofthe type of loans being offered are helping to move them,particularly for investors. "Sales being offered by CMBS specialservicers [are often] income-type property," whereas banks usuallyissue construction and land-building assets, Tobin explains."Commercial real estate investors gravitate toward income propertybecause it's easier. It's less complex." This in turn leads to alot of interest in these types of portfolios when they come out tomarket.

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A few of the properties are $170 million of the loans aresecured by office, with the largest five located in Cherry Hill,NJ; Southfield, MI; Great Nec, NY; Chula Vista, CA; and Thornton,CO. Retail secures about $75 million worth of the loans totalingone million square feet, while $39 million are secured by 1.5million square feet of industrial properties.

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According to Mission Capital, the loans will respectively besold out of separate CMBS trusts and "investors will be required toprovide individual, loan-level bid pricing for each asset."Investors will have the ability to pick and choose which loans orcombinations of loans to bid upon within the portfolio, althougheach investor will be required fill out a confidentialityagreement.

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Selling the loans individually lands the best overall price,Tobin points out, plus it broadens the base of companies andinvestors willing to throw their hat into the bidding process.Mission Capital is receiving indicative bids by May 26 and willfinalize loan sale agreements prior to the final bid date on June23.

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