The portfolio was financed by LaSalle Commercial Mortgage Securities Trusts 2006-MF4 & 2007-MF5. According to PNC Financial Services Group Inc., subsidiary Midland Loan Services is the special servicer for the loan. The non-performing assets are located in Pine Bluff and Texarkana, AR; Phoenix, AZ; College Park, GA; Detroit, Rockwood and Ypsilanti, MI; Cincinnati, OH; Del City, OK; and Gastonia, NC. The REO assets are in Charlotte, NC and Channelview, TX.
"This is all small-balance multifamily," comments William Mitchell managing director with Holliday Fenoglio Fowler LP's Chicago office. Mitchell, who is teaming with HFF Chicago and Dallas brokers in marketing the portfolio, tells GlobeSt.com that the servicer is open to any and all bids from one-offs to the entire portfolio. "We have all types looking at this," he says, adding that the "types" range from large hedge funds to "people with gmail addresses who own the properties next door."
Mitchell, who just closed an $85 million distressed portfolio, says as more product and non-performing loans enter the market, in recent weeks, buyer have been out there, waving their checkbooks. This is a vast change from even six months ago.
"A lot of capital is being targeted for distressed assets, and it's common, when we put these deals on the market, to get a lot of interest and a lot of people looking at them," Mitchell says. Meanwhile, on the seller's side, disposition is becoming more popular. But Mitchell acknowledges banks are still somewhat reluctant to let go of the assets on their books.
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