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CRE Loan Prices Increase

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New data indicate that the price of commercial mortgage trades rose in January. Recent secondary transactions in the commercial mortgage sector include a government portfolio, performing loans and non-performing assets.

DebtX reported that it priced 51,399 commercial real estate loans with an aggregate principal balance of $616.1 billion during January. The loans collateralized 651 commercial mortgage-backed securities. Volume slipped from 51,895 loans for $621.5 billion a month earlier and was also lower than 55,253 loans for $658.3 billion a year earlier.

CRE loans were priced at 86.4 percent in January, better than 86.1 percent in December and 79.8 percent in January 2011, DebtX said.

A disclosure late last year from the Department of Housing and Urban Development indicated that unsubsidized multifamily and healthcare mortgages were being put of for bid. The loans were not insured by the Federal Housing Administration.

HUD’s bidding process ran through December, and the closing was expected to be completed by Jan. 6, 2012.

Starwood Capital Group said in January that it acquired a $312 commercial real estate loan portfolio from a southwestern regional bank. The 106 loans included first mortgages and real-estate-owned assets. About half of the portfolio is performing. Texas properties accounted for 70 percent of the portfolio.

The sale of a $100 million non-performing note portfolio collateralized by 30 properties including multifamily, student housing and commercial properties was announced last month by SL Capital LLC. Assets were located across 11 states, and financing was arranged through an institutional investor.

On Jan. 9, Hudson Realty Capital LLC said it held the final close of its fifth fund targeting middle market debt transactions. The activity included new originations, note acquisition financing, DPO financing and existing loan purchases. Hudson funds have reportedly raised $250 million that will be used for middle-market investments generally in the $5 to $35 million per-asset range.

Hudson said that its Fund V has closed approximately $120 million in new originations and purchased approximately $450 million in sub- and non-performing loans. It also acquired two FDIC pools including a $139 million Colorado portfolio of 97 acquisition-development-and-construction loans and a southeastern pool of 109 commercial real estate assets with an unpaid principal balance valued in excess of $102 million.

A $17.7 million non-performing loan originated in 2006 was acquired late last year by SilverLeaf Financial, according to a statement. The loan is secured by a residential condominium and retail development in Salt Lake City. The FHA-approved project had been hit with numerous delays over the past few years but is now ready for completion.

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