M&I Markets $500 Million Portfolio

May 20, 2010

Source: Commercial Mortgage Alert

M&I Markets $500 Million Portfolio

M&I Markets $500 Million Portfolio

M&I Bank is offering a $500.4 million portfolio almost entirely made up of commercial real estate loans and fore- closed properties.

All but a handful of the roughly 100 assets are in various stages of distress. Four loans have balances exceeding $25 mil- lion, and the 15 largest assets account for 55% of the portfolio. Some of the loans were previously marketed by the bank.
Investors can bid on any of 11 pools, divided by geography, or on the entire portfolio. Bids are due May 27. Milwaukee-based M&I wants to close sales by the end of the second quarter. Mission Capital Advisors of New York is handling the auction.
A breakdown of the portfolio by property type wasn’t pro- vided in marketing materials. The assets are in 17 states, with concentrations in Florida (29%), Illinois (16%), Wisconsin (14.5%) and Colorado (10%).
The largest asset is a nonperforming $36.6 million con- struction loan on a student-housing property next to the University of Denver. M&I originated the three-year loan in
2008 and sold a participation interest to First National Bank of Colorado. Both pieces are being offered. The borrower, local developer MacKenzie House, defaulted in the past six months. The 355-bed property, called Asbury Green, was only 32% occupied in the fall semester. Spring occupancy figures were not available. The loan had an original balance of $40.1 mil- lion. M&I included it in a large offering in November, but did- n’t strike a deal.
In addition to the real estate assets, the portfolio includes
$14.4 million of stock in banks in California and Illinois. Those
assets make up one of the pools.
M&I is a unit of Marshall & Isley, one of the most aggressive
sellers on the secondary market over the past couple of years.
At yearend, the parent held $17.4 billion of commercial real

estate assets, consisting of $9.3 billion of commercial mort- gages, $2.6 billion of multi-family loans and $5.5 billion of construction and land loans. Seven percent of the assets were
nonperforming. Y

COMMERCIAL MORTGAGE ALERT: May 14, 2010, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700

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