Carlton Handles North Texas Distress Sale for $85M

DALLAS-The Carlton Exchange, a subsidiary of New York City-based Carlton Group,
has arranged the sale of a number of distressed loans and properties for more than
$85 million. The auction process continues to be a great way for banks to dispose
of unwanted assets, said the firm.

The properties in this portfolio included bank-owned performing and non-performing
loans and REO assets secured by office, retail, hospitality, industrial, land and residential properties located throughout north Texas. The sites were sold in a first-come, first-served auction, where properties were listed on an auction site for a bank-arranged price, and the first firm that could meet the price won.

“We received close to 300 bids,” says Joe Korbar, co-chair of the company’s Loan
Sale Group. “We were able to sell 85% of the assets offered at 99% of the price we indicated we could achieve.  From our perspective, auctions are doing great. We sold more than 1,000 properties in 2010, more than $3 billion worth of transactions.”

The properties included two 90-room hotels, including one close to the Allen Event Center in Allen, TX; a 582-unitself-storage facility; two bank-owned office buildings that totalled more than 100,000 square feet (about 45% occupied)and another 45 residential and REO assets. It took about seven weeks to complete the sales, Korbar says.

He says distress will likely continue to pick up in the next few years. “There’s about $300 billion of debt coming due,with special servicers handling about $90 billion. The big question is pricing. There’s not a lack of buyer interest, there’s a lot of money on the sidelines, it’s just a matter of creating a good pool, having the correct marketing plan, understand value and getting those all together with a bank that is comfortable. More times than not if you do those things, you’ll have a good execution,” Korbar tells GlobeSt.com.

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