PHOENIX—Auction.com, LLChas been retained as the exclusiveloan sale advisor for the senior participation interest, includingservicing rights, for two 2007 vintage notes collateralized by twoclass A multifamily properties in Gilbert.

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Constructed in 2007 and with a June 2014 occupancy of 94%, thetwo garden-style luxury apartment complexes total 624 units andoffer market-leading finishes and amenities.

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The subject notes, which mature in April 2017, are fixed-rate,interest-only loans at a 5.62 percent coupon. They arecross-collateralized/cross-defaulted and thus part of a singleoffering. With a total unpaid principal balance of $45,000,000, thesenior participation is currently held by a government sponsoredenterprise. The junior interest, which is not part of thisoffering, is held by an affiliate of the borrower, anowner/developer of class A multifamily properties with 3,550 unitscurrently under management and an annual revenue of $25million.

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Regarding the value of the underlying collateral,RCAnalytics indicates significant liquidity in thepast year in the Southeastern Phoenix MSA. Multifamilyapartment complexes built after 1995 have traded at a notably tight5 to 5.5 percent cap rate range.

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Indicative bids are due no later than October 23 andthe final auction is scheduled for November 6. To learn more,visit www.auction.com/arizonamfnotes.

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GlobeSt.com willupdate this story as more information becomesavailable.

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