In one offering, Clark Street helped a regional bank divest out of a legacy portfolio of largely performing, but classified commercial real estate loans within the Louisville, KY metro area. In selling a complicated portfolio to two different private equity firms, Clark Street solicited bids from over two dozen parties, including several local and regional banks. Final pricing exceeded Clark Street’s initial estimates by approximately 100 basis points.
In another sale that closed in late September, Clark Street helped a bank operating in more than a dozen states divest out of fixed rate residential mortgages acquired for CRA purposes. It was a unique transaction, as the seller of the loans was not the servicer, which presented significant operational challenges. Ultimately, four different parties had to be comfortable with a highly complicated transaction featuring over 400 small-balance residential mortgages. The loans were sold at a premium to par and exceeded the reserve price by over 50 basis points.
Jon Winick, CEO of Clark Street Capital, said, “These two transactions demonstrate the broad range of Clark Street’s expertise, as we are the best firm for highly unique and customized transactions. I am confident that no other firm could have delivered as capably as we did on these two deals, and we received broad accolades from our clients.”
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Clark Street Capital is a full-service bank advisory firm specializing in loan sales, loan due diligence and valuation, and wholesale lending.