CBRE Capital Markets announced that its National Loan & Portfolio Sale Advisors team has exclusively advised on the consecutive sales of three loan portfolios, totaling approximately $113 million.
Patrick Arangio and Jack Howard, based in CBRE’s Midtown Manhattan office, and Kurt Altvater, based in CBRE’s San Francisco office, exclusively advised three sellers—a leading California-based bank and two global private equity firms—on the respective portfolio sales.
Each transaction averaged 10 weeks from commencement to close and garnered interest from a diverse group of institutional investors, including life insurance companies, private equity funds, investment banks, and money center banks both domestic and international.
“Over the past year, the demand for performing loans—both fixed and floating rate—has grown significantly as investors continue to chase yield,” said Mr. Arangio, Vice Chairman of Capital Markets at CBRE. “These sales provided investors with the rare opportunity to acquire diverse portfolios of small balance multifamily and commercial mortgage loans secured by well-located collateral at attractive yields. We were able to leverage our extensive, recent performing loan sale experience, in-depth market knowledge and institutional relationships to achieve strong competition and maximize pricing.”
Portfolio #1 consisted of 114 mortgage loans secured by multifamily properties located across 30 states, with a total value of $50 million. A disproportionate majority of the loans were performing and offered an attractive risk-adjusted return for senior secured mortgages. The owner, a global private equity firm with its North American headquarters in California, sold the portfolio to a New York-based fund.
Portfolio #2 consisted of 77 performing mortgages loans secured by multifamily and manufactured housing properties in 28 states, with a total value of $43 million. The portfolio yield was in excess of current underwriting standards for highly-financeable, low leverage, stabilized, multifamily mortgages. The owner, a global private equity firm with its North American headquarters in New York, sold the portfolio to an institutional asset manager.
Portfolio #3 consisted of 38 performing mortgage loans secured by highly liquid and well-located multifamily and commercial properties throughout California, with a total value of $20 million. The assets were significantly concentrated in major markets such as Los Angeles, San Francisco and San Diego. The owner, a leading California-based bank, sold the portfolio to a Maine-based full-service banking institution.
CBRE’s National Loan & Portfolio Sale Advisors is the market leader in mortgage loan sale executions in the secondary market with more than $5 billion of performing loans closed over the past four years. Clients have included domestic and foreign banks, insurance companies, investment banks, mortgage REITs, debt funds, private equity and government agencies. Individual loan and portfolio sizes have ranged from less than $1 million to more than $3 billion.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
