DebtX to Sell $411m of HUD and Non-Performing Loans
Boston-based loan sale adviser DebtX is selling $411.5m of loans this month. It will offer a $306m portfolio of non-performing loans on behalf the US Department of Housing and Urban Development (HUD), and a $105.5m portfolio of non-performing loans on behalf of a regional bank in the western US. The HUD portfolio consists of 25 multi-family commercial real estate loans ranging in size from $1.6m to $44.3m, as well as one healthcare loan. The collateral is located in 14 states. DebtX, through its KDX Ventures partnership with Hillsborough, NC-based boutique investment banking firm KEMA Advisors, will accept bids on the HUD portfolio from 11 a.m. to 1 p.m. EST on Wednesday, March 24, 2010. “KDX Ventures anticipates robust interest in this HUD portfolio due to pent-up demand for commercial assets in general and multifamily product in particular,” said DebtX CEO Kingsley Greenland, in an statement e-mailed to HousingWire. “HUD has an excellent reputation in the marketplace, and there is typically active bidding for product offered by the agency.” DebtX is also selling $105.5m of primarily non-performing loans for a regional bank. The portfolio consists of 71 loans, the three largest of which bear a combined principal balance of $47.6m. The collateral includes commercial and residential properties primarily in California, Washington, Oregon and Arizona. “A growing number of equity buyers are seeking to re-enter the commercial real estate market by purchasing loans because many distressed properties are in default or are unable to service their debt. Buying the loan is a very effective way to again own commercial real estate.” DebtX will accept bids on this portfolio on Monday, March 22, 2010. Write to Diana Golobay.