CWCapital Asset Management LLC Closes Sale of $3.43 Billion UPB Portfolio of Real Estate and Commercial Mortgage Loan Assets in U.S.
BETHESDA, Md.--(BUSINESS WIRE)--In October 2013 CWCapital Asset Management LLC (“CWCAM”) marketed 134 assets with an unpaid principal balance of $3.43 billion dollars. The assets consist of predominantly real estate and non-performing commercial mortgage loans spread across the U.S. and were marketed through two sale platforms, CBRE, Inc. and Auction.com. CWCAM is pleased with the results achieved with 110 of 122 assets closed. The remaining 12 assets are expected to close no later than mid-March and it is projected that overall recoveries averaging $0.66 on the dollar of UPB will be achieved.
“The results of the sale validate our decision to manage and create value on certain assets through the low points in the real estate cycle. We believe this path ultimately resulted in greater value recoveries.”
The assets that were marketed through CBRE, Inc. received over 730 signed confidentiality agreements, which resulted in approximately 153 bidding entities and over 930 bids on 63 assets offered and 62 assets sold.
The assets marketed through Auction.com received over 5,000 signed confidentiality agreements from interested buyers, which resulted in approximately 244 bidding entities and over 1,130 bids on 71 assets offered and 60 assets sold.
In the coming weeks CWCAM will report more detail on these transactions at the asset level through standard Investor Reporting Package methods. The trusts received, in total, proceeds of approximately $2.26 billion of the original $3.43 billion UPB brought to market. According to CWCapital’s President, David Iannarone, "The results of the sale validate our decision to manage and create value on certain assets through the low points in the real estate cycle. We believe this path ultimately resulted in greater value recoveries.”
Provided market conditions remain favorable, CWCAM may consider additional, more limited bulk sales in the future. CWCAM expects to announce any such sales and disclose specific assets to be included through standard reporting prior to the start of a marketing process.
About CW Financial Services
CW Financial Services (CWFS) is a unique commercial real estate services platform offering a full range of products and services including special servicing, investment management, property management, consulting, insurance and risk management and technology solutions through its subsidiaries CWCapital Asset Management, CWCapital Investments, CompassRock Real Estate, ConvergentRisk Insurance Agency and CWFS Insight.