SAN FRANCISCO - (Business Wire) Bridger Commercial Funding
’s BankXchange program announced today that it has been retained on an exclusive basis by a major western states bank to sell the largest pool of West Coast performing commercial real estate loans to be brought to market this year. The portfolio totals $148 million, consisting of 88 loans secured by properties in the economically diverse Los Angeles Basin. It includes owner-occupied loans financed under the SBA 504 program, and loans on income properties.
“This portfolio is a must-see for any potential buyer seeking to bolster their existing exposure to, or to gain immediate critical mass to, the Los Angeles market, where economic conditions remain strong,” said Bridger Senior Vice President and BankXchange Program Manager, Paul O’Rear. “It’s very rare for a portfolio of this size and caliber to be offered for sale, plus it carries the added appeal of being composed of assets located in and among the most dynamic and appealing markets in the country. If a prospective bidder already has a Los Angeles portfolio of loans, this pool gives them the opportunity to instantly increase outstandings and market share with quality assets, with economies of scale that derive from managing a larger portfolio of assets in a single metropolitan area,” O’Rear observed.
The portfolio consists of both owner-occupied and income-producing real estate. The majority of the owner-occupied properties secure SBA 504 loans. The overall portfolio loan-to-value ratio is below 60%, and the debt service coverage ratio exceeds 1.60. Most loans were originated within the past two years and have five to seven year maturities. The majority of loans carry fixed interest rates.
The portfolio is being offered in two pools, one comprised of the owner-occupied loans and the other consisting of the income property loans. Potential buyers can bid on either pool, or both, based on their loan portfolio criteria, O’Rear noted. The pool of owner-occupied loans totals $95 million, consisting of 58 loans. The pool of investment property loans totals $53 million, consisting of 30 loans.
BankXchange will accept bids on a “subject to due diligence” basis through Friday, August 29, 2008 at 5 PM Pacific Daylight Time.
Interested buyers seeking detailed information on this portfolio should contact BankXchange Vice President Michael Malekos at (415) 289-3227, mmalekos@bridgerfunding.com; or Senior Vice President and BankXchange Program Manager Paul O’Rear at (415) 289-3239, porear@bridgerfunding.com.
Bridger Commercial Funding offers an array of commercial real estate funding options that help banks generate fee income, enhance borrower relationships, and optimize commercial real estate portfolio risk/return profiles. The company also acts as an advisor for loan trading through BankXchange – the banking industry’s leading commercial real estate loan sale advisory service.
Bridger Commercial Funding
Mike Malekos, Vice President, 415-289-3227
Fax: 415-331-3390
www.bridgerfunding.com
