CHICAGO—A US$140-million loan portfolio, of which hotel collateral comprises nearly two-thirds, is being marketed for sale.
The “$140MM Nationwide SBA 504 Portfolio” consists of 81 loans and 13 real-estate owned properties being offered by three undisclosed banks. The total unpaid principal balance of the portfolio is US$137.22 million. Hotel assets comprise 65% of the portfolio, and the value of the loans included total US$89.11 million.
Performing loans make up 62% of the portfolio (US$85.31 million) and nonperforming loans comprise 25% (US$34.11 million). REO is 9% of the portfolio (US$11.83 million) and sub-performing loans are 4% (US$6 million).
View the portfolio’s executive summary.
Hotel assets included in the portfolio are newer, limited-service hotels and largely represent the Choice and Wyndham brands, said Jon Winick, president of Clark Street Capital Management LLC, a Chicago-based full-service bank advisory, disposition and asset management firm, which is marketing the portfolio. Other branded assets, such as Carlson-flagged hotels, also are included, he said.
The portfolio’s contents are diverse, Winick said. Highlights of the portfolio include:
• A total 85% of the assets are Small Business Administration 504 first mortgages.
• The average weighted interest rate for the 81 performing loans is 6.43%.
• There are prepayment penalties on 81 of the 83 loans.
• In addition to hotels, the portfolio consists of retail (18%), industrial (6%) and office (6%).
• All loans are whole loans secured by first mortgages on real property with real guarantees.
• Four pools comprised of 15 sub-pools varying in size from US$1.1 million to US$22 million.
• Average age of the hotels in the portfolio is approximately 10 years.
The portfolio’s diversity is its most defining characteristic, Winick said. Most of the loans were originated approximately five years ago.
“There’s a good mix of growth (from) high-growth southeastern (U.S.) markets and stable Midwest markets,” he said.
“For the most part, these are good borrowers,” Winick said, adding, “The initial leverage on the loans was modest.”
The timeline for the sale is as follows:
• Indicative bid date: 15 December 2011
• Final bid date: 29 December 2011
• Bid award date: 2 January 2012
• Closing date: 12 January 2012
Contact:
Jon Winick
President, Clark Street Capital Management LLC
Email: jon.winick@clarkstcapital.com
Default Ad Will Appear Here