$400M FLORIDA PORTFOLIO SELLS PIECEMEAL
June 8, 2010
(Distressed Real Estate) Non-performing loans and REO assets throughout Florida are going up for bid in a new format launched by Carlton Exchange (CEX). A large commercial bank retains the firm to sell more than $400M of assets, including multifamily, retail, hospitality and land — 70% are non-performing loans and 30% are distressed assets. Income-producing assets tally 60% of the portfolio, with some boasting prime infill locations or proximity to major tourist destinations.
Unlike the sealed-bid process, this auction allows potential buyers to see the assets and bid on individual loans or properties on a first-come, first-serve basis. They can also combine assets into pools as they choose. Managing Director Joe Korbar notes this format not only removes the pressure of timeframes in bulk auctions that generally favor institutional investors but also allows investors to be more selective without tying up their cash. The auction launched on April 14 and CEX has already received more than 500 confidentiality agreements. Bidders will get a response within 48 hours and, if accepted, offers close in 10 days. The bank recently gave CEX another 100 assets to sell.
Assets include 366 condo units at the Villa Bellini within the Country Club of Miami (REO); 180 high-end units within a 384-unit apartment complex located 10 miles southwest of Orlando’s central business district with an unpaid balance of $14.1M; a 59,969-s.f. shopping center situated across the street from Edison Mall in Fort Myers, which also has two multi-tenant buildings and one single-tenant building and an unpaid balance of $3.3M; three separate loan pools secured by five parcels between the Trump International Hotel & Tower and the Hilton Beach Resort on Fort Lauderdale Beach, which include hospitality buildings totaling 70-plus rooms; two adjoining retail properties comprising about 11,900-s.f. in
Coral Gables; the 180-room Quality Inn Sawgrass Conference Center in Plantation with an unpaid balance of $5M; and a vacant 148-acre parcel in Miami-Dade County, which has tentative plat approval to develop 825 single-family and multifamily homes with an unpaid balance of $33.3M (it previously operated as the California Club Golf Course).
