Source: Commercial Mortgage Alert

M&I Bank Markets Defaulted Loans

M&I Bank Markets Defaulted Loans

M&I Bank, one of the most-active sellers of distressed assets, is shopping a $235.8 million portfolio of mostly defaulted loans.

The offering consists of 47 loans collateralized by a mix of property types, construction projects and land. The properties are in 16 states, with large concentrations in Arizona and Illinois.
Almost all of the mortgages are defaulted or tied to borrow- ers who have filed for bankruptcy. Only two, totaling $3.2 mil- lion, are performing.
The level of distress is likely to tamp down offers. Investors can bid on individual loans or any combination. Bids are due Aug. 26. The Milwaukee bank wants to close sales by the end of September. It is being advised by Mission Capital Advisors of New York.
Among the largest loans in the portfolio are a $17.6 million land loan in suburban Phoenix and a $14.2 million condo- minium-conversion loan on a property near Chicago. Twenty- nine loans have balances of less than $5 million.
The largest loan is backed by 34 acres in Gilbert, Ariz. Developer Opus West acquired the land in December 2007 with the intent of building a mixed-use property. But the project never got off the ground, and the loan went into default in April. Phoenix-based Opus, one of the five regional operating companies of Opus Corp. of Minnetonka, Minn., filed for bankruptcy in July, following in the footsteps of two other Opus units.
The condo-conversion loan, which had an original balance of $36.1 million, is backed by an age-restricted complex, called Mallinckrodt in the Park, in Wilmette, Ill. M&I began foreclo- sure proceedings after the borrower was able to sell only 48 of the 81 units.
M&I is a unit of Marshall & Ilsley, one of the nation’s most- active lenders on commercial real estate. At the end of March, the holding company had $19.4 billion, or almost one-third of its assets, invested in commercial real estate debt, ranking 18th among U.S. banks, according to Foresight Analytics.

The portfolio consisted of $8.8 billion of commercial mort- gages, $8.3 billion of land loans and $2.3 billion of multi-fam- ily mortgages.
Some 6.6% of the portfolio, or $1.3 billion, was nonper- forming. M&I has been moving aggressively to liquidate trou- bled loans. Last year, it sold $780 million of loans, mostly via Mission Capital. This year, it has marketed more than $630 million through Mission Capital, including the current offer-
ing. Y

COMMERCIAL MORTGAGE ALERT: Aug. 14, 2009, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700

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Source: Bisnow

Loan Sale Success


Augusr I I , 2009


Recession Proof?

you're looking for a recessionproofbusiness, why not try Red x K leenex supplier, or perhaps loan sale advisory? We recently opped by Mission Capital Advisors' 584 Broadway office, where principal David Tobin tells us that the past 24 months have been the firm's busiest. There are plenty of distressed sellers who need tO clean up their messes; the firm's been advisi ng a Chapter 7 trustee on the liquidation of a mortgage portfolio from a fraudu­ lent hedge fund, advising many banks with land and condo loans, and hel ping special servicers of CMBS maximize recovery of

defaulted loans.

Work's been especially hot in commercia l real estate, government, and single family loan portfolios as banks come to grips with the market. As Mission Capital juggles the turbulence, it's also seeing

inhouse growth. The staff of 25 is quadrupling its office size to

8.4k SF in TriBeCa, and continuing i ts national expansion (beyond offices in Austin and Palm Beach Gardens, a new one's opening in SoCal). Wi th a new websi te, new high-octane internet loan trading system, publ ic sector contracts, and an expanding cl ient base, it's springboarding i nto a more diversified company, David notes.

Run, don't wal k to your nearest loan advisor. David's a lways up for a challenge, and he's now a beginner triathlete. He recently finished a spr i nt triathlon in Montauk, which included a half-mi le sw i m, 1 4-mile bike race, and three-mi le run, placing 240 out of

476. (Here, he's seen runn i ng with his son .) His takeaway? Life is not a marathon, it's a series of sprints.



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Source: CRENews

CWCapital Offers $252Mln of Nonperforming CMBS Loans in Ohio, Mich.

CWCapital Offers $252Mln of Nonperforming CMBS Loans in Ohio, Mich.

Commercial Real Estate Direct Staff Report

CWCapital Asset Management has put a portfolio of 31 distressed CMBS loans with a balance of $252 million up for sale through Mission Capital Advisors.
The loans are concentrated in Michigan and Ohio, two states that have been especially hard hit economically because of their dependence on the flagging domestic auto industry.
Mission, of New York, plans to take indicative offers for loans in the portfolio on Aug. 27 and final offers on Sept. 22. It is aiming to complete sales on Sept. 29.
The portfolio includes a $4 million loan on a Bolingbrook, Ill., retail property as well as a relatively small amount of debt on retail properties in Indiana.
If the Needham, Mass., special servicer successfully sells all 32 loans in the portfolio it's offering, it will have put a significant dent on its holdings of loans on Michigan and Ohio properties. It is currently actively managing 71 CMBS loans with a balance of $907 million in the two states. That represents nearly one-tenth of its $10.1 billion active special servicing portfolio.
The portfolio that CWCapital put on the sales block is heavily weighted with loans on retail properties – 15 with a balance of $84.5 million – and apartment properties – six with a balance of
$106.4 million. It includes two office/retail loans with a total balance of $27 million; three office loans with a balance of $13.6 million; two industrial loans with a balance of $10.7 million, and loans on three mobile-home parks in Ohio with a balance of $10 million.
Because each loan is owned by a separate CMBS trust, Mission will take offers for individual loans.
The largest loan in the portfolio has a balance of $35.4 million and is backed by the 260-unit Brownstone Apartments at 42330 Joye Lane in Novi, Mich., which is just northwest of Detroit. The loan requires only interest payments totaling $1.8 million annually, until next June, when it starts amortizing. But the nine-year-old property is nonetheless having difficulties keeping
current with its debt-service requirement. It was 82 percent occupied as of the end of last year and generated $1.4 million of net cash flow, according to servicer data compiled by Realpoint. The loan was securitized through JPMorgan Chase Commercial Mortgage Securities Corp.,
Another big loan in the portfolio has a balance of $26.8 million and is backed by the 148-unit Main Street Village Apartments in Novi. As of the end of last year, the six-year-old property was 85 percent occupied and generated only 91 percent of the cash flow needed to fully service its debt, according to Realpoint. In March, the loan was moved to special servicing because of imminent default. It was securitized through GMAC Commercial Mortgage Securities Inc.,
If you exclude the three loans in the portfolio that have balances of more than $25 million
apiece, loans average $5.9 million. Only 10 of the loans offered were originated in 2006 or later. Eleven were written in 2003 or before. Only three loans with a combined balance of less than $5 million are past their due dates. A total of 24 mature in 2015 or later. But all are nonperforming in that they do not generate sufficient cash flow to fully service their original debt.
For additional details on the offering, contact Mission at (212) 925-6692.

Comments? E-mail Orest Mandzy or call him at (215) 504-2860, Ext. 211.

Copyright ©2009 Commercial Real Estate Direct, a service of FM Financial Publishing LLC. All rights reserved.

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