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.

TilE MORTGAGE OBSER.Vffi

"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."