HFF Completes $105.4 Million Sale of Two Small-Balance Commercial Real Estate Loan Pools

HFF (Holliday Fenoglio Fowler, L.P.) announced today they have completed the sale of two small-balance commercial real estate loan pools totaling $105.4 million on behalf of a special servicer and a money-center bank.

HFF managing director Bill Mitchell and senior managing director Stuart Salins in Chicago represented the sellers in the transaction.

The two portfolios were marketed separately and include 95 loans in 25 states. Rather than offering and then selling the loans to investors on a “bulk” or portfolio basis, which is typical in the industry for such type of loans, HFF instead was able to tap into its investment sales database and target local, strategic buyers willing to aggressively bid on individual assets. In total, more than 600 confidentiality agreements were executed. The assets offered were sold in 26 different transactions to 18 different local and regional buyers.

“In all, HFF’s unique approach netted 20 to 25 percent more in sales proceeds with fewer kick-out than had HFF sold the loans in aggregate to traditional large-portfolio bidders,” said Mitchell.

HFF (NYSE: HF) operates out of 17 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, structured finance, private equity, loan sales and commercial loan servicing. www.hfflp.com.