Source: Commercial Real Estate Direct

Mission Capital Advisors is offering a $108.1 million portfolio of mixed-quality commercial mortgages and residential loans on behalf of a bank client.

Mission Capital Offers $108.1Mln Mixed-Bag Loan Portfolio

Commercial Real Estate Direct Staff Report

Mission Capital Advisors is offering a $108.1 million portfolio of mixed-quality commercial mortgages and residential loans on behalf of a bank client.
But instead of slicing the portfolio into a number of smaller pools, it is aiming to sell all 432 loans to one investor. Its thinking is that quite a few institutional investors have developed the capabilities needed to service and manage large pools of assets, so demand for large portfolios should be healthy.
A case in point is Capmark Bank's recent sale of a $911 million portfolio of office, hotel and golf course properties to Deutsche Bank. That portfolio was marketed for sale through Eastdil Secured, which normally would have been divided into smaller pools. But it chose to market it as a portfolio because of the strong demand from large investors. Deutsche is said to have agreed to pay 82 cents on the dollar for the loans.
Mission Capital's offering contains 241 commercial real estate loans with a balance of $70.6 million; 69 acquisition, development and construction loans against land parcels with a balance of $15.4 million; 60 single-family home loans with a balance of $12.8 million; 55 business loans with a balance of $9.1 million; and 7 unsecured credits with a balance of $311,947.
All of the loans are in some sort of distress. A total of 200, with a balance of $53.8 million, are less than 30-days late, but the remainder are more delinquent. And 148 loans with a balance of
$40.4 million have matured. A total of 97 of those, with a balance of $33.8 million, are still making their interest payments.
The loans' average size is $250,326. And most – 281 – have balances of $250,000 or less. Ten loans have balances of more than $1 million each. The loans in the portfolio have a weighted average origination date of 2006, maturity of 2015 and coupon of 6.3 percent.
Mission Capital has set a June 26 deadline for indicative bids. It will then invite certain investors to conduct more thorough due diligence and plans to take final bids on July 17. It expects to close a sale by Aug. 1.
For additional details, contact Mission Capital at (212) 925-6692.

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

Copyright ©2012 Commercial Real Estate Direct, a service of FM Financial Publishing LLC. All rights reserved.

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Source: CNN Money

Tight inventories of homes for sale in certain markets bode well for continued price gains in those areas, said Luis E. Vergara, director of Mission Capital Advisors in New York. But that’s not enough. “We still need to see greater breadth across markets on a consistent basis to say that we’ve reached an inflexion point and recovery is underway at the national level,” he said.

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Source: Housing Wire

Luis E. Vergara, a director at Mission Capital Advisors said the CoreLogic report suggests an increase in the velocity with which servicers are liquidating non-performing loans. “However, the CoreLogic methodology omits 90+ day delinquent loans that were recently cured or modified and the likely occurrence of re-default for a subset of this group,” said Vergara. “The drop in shadow inventory may not be as rosy as the report implies.”

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Source: US News

With the extra competition now coming from abroad, will domestic buyers be pushed out or priced out by foreign buyers? At this point it’s not likely, says Luis Vergara, director at financial services firm Mission Capital Advisors. Although he’s seen an uptick in sales to foreign buyers in his home market of New York City, overall international buyers still make up a relatively small percentage of total sales.

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Source: The Mortgage Observer

Mission Capital Advisors is marketing a $345 million special servicer loan sale on behalf of special servicer CW Capital Asset Management. Will Sledge, a managing director, said that though individual bids will be considered, the pool might best be sold in large chunks, maybe even to a single institutional investor, since these have shown increased aggression as of late.

June 2012

$345 Million in Distress on Offer from Mission

Oversight by CW Capital Asset } Management kept collateral sh·ong.

Mission Capital Advisors is ma rketing a $345 million special servicer loan sale on behalf of special servicer CW Capita l Asset Management, The Mongage Obsen,er has learned. The assignment marks

the growi ng market demand for distressed loans.

Will Sledge, a Mission managing director, said that. though individual bids will be considered, the JX>OI might best be sold in large chunks, maybe even to a single in­

sdwtional inveswr, since these have shown increased ag­

gression of late.

"It's going m be attractive to inscitutional investors as well as local owner-operacars who might be interested in bidding for specific assers," Mr.Sledge said. "Bur more co the point, the institutional invescors who have been grow­ ing more aggressive and have outbid to a large degree re­ cendy the loan-w wn

ter this portfolio as well."

The dozens of assets securing the pool are diverse and spread from coast to coast. However, in the New York tristate area they include a $12-million industrial and cold­ storage facilicy in B rooklyn and a Melvile office propercy saddled with an unpaid balance of$10 million.


"The asset class spectrum is broad," Mr. Sledge told The Morrgage Observer. "lc's pretty much everything that you'd expect to see from a special servicer-you have office, recail, multifamily, industrial, hospitalicy, manufac­ tured housing, self storage.

And the l ist kind of goes on and on."

Interest, he added, has already been scrong. This is due in pan to collateral that is "rypically very sol­ id in comparison to oth­ er bank loan sales that are out there currcndy in the market," Mr. Sledge said. Oversight of the propenies

by CV Capital Asset Managemem has helped as well.
"You have structured documentation because these as­ sets were originated to be sold imo securitization so that documentation is fairly straightforward and clean," he said. "And you have good data because you have an active asset management process on CW's behalf, so you don't have many holes in terms of trying to fill in the blanks in terms of what's happened from the point of origination to today."

As co how, and if, the pool is broken up, Mr. Sledge

said that it's too early to tell but that "price will diccate the direction."

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