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| Portfolio Sales |
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Southwest Portfolio - $21,886,125
A national finance company exiting commercial real estate engaged Bridger to remainder of its portfolio. The loans were well seasoned, but had a COFI-based weighted average coupon of 5.86% and an average maturity of 16+ years. The portfolio was marketed to 98 banks over a 14-day period; eight bidders placed written offers and a price well above the Seller’s expectations was achieved.
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California Central Coast Portfolio - $23,663,664
Bridger sold a $23.6 million portfolio of seasoned loans secured by office, unanchored retail and self storage properties in Californias Central Coast region. To preserve borrower privacy and customer relationships, all local banks were excluded by the Seller and borrower contact by a Buyer was prohibited. Bridger structured a 95% participation on a servicing retained basis for a price above-par. The portfolio was sold on behalf of a Southern California commercial bank, to a Northern California community bank.
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Pacific Northwest Loan Portfolio - $27,000,000
Bridger sold a $27,000,000 performing, floating rate portfolio on behalf of a Pacific Northwest client. Properties included multifamily, unanchored retail, office and an automotive center, predominantly located in Washington and Oregon. Through the Bridger network of banks, a transaction was quickly put together with the Dallas office of a San Diego-based bank. Loan sizes ranged from $727,000 to $5,141,000.
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Midwest Participation Loan Portfolio - $36,789,246
This portfolio consists of 7 performing credits totaling $36,789,246 with all properties located in Wisconsin. The Seller seeks to sell different levels of participation in the loans, servicing retained. 5 credits are cross-collateralized and secured by new, profitable assisted living and senior multifamily properties and 1 is secured by a medical office building. The last credit is a 30% participation interest in a seasoned facility secured by 50% of the shares in one of the largest privately-owned hospitality companies in the U.S. This credit will continue to be serviced by the lead bank. Loans range in size from $320,000 to $7,369,484 with seasoning averaging 28 months. 6 loans are Prime-based, one has a fixed interest rate. All loans are recourse and guaranteed by financially solid guarantors.
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So. Calif. MF Servicing Portfolio - $26,426,398
Bridger arranged for the sale of servicing on a well-seasoned $26,426,398 pool of Fannie Mae multifamily loans. The Seller was exiting all facets of commercial real estate lending and was unable to find a successor servicer due to onerous Fannie Mae credit support requirements. Bridger structured a transaction wherein an inducement fee was paid to a party brought in by Bridger to balance out the credit support costs, and coordinated negotiations between Seller, Buyer and Fannie Mae. The Seller achieved their objectives at a cost far below expectations, while the new Servicer made a fair return and gained a first look at refinance opportunities in the portfolio.
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Seattle Multifamily Portfolio - $16,305,000
A Northwest bank was at their relationship cap with a key client, with additional loan requests imminent. Bridger was engaged to create portfolio capacity, and within 17 days a contract was signed with a Southwest bank to buy 90% and 100% participations in five new multifamily loans and one existing loan, servicing retained. The Seller retained all loan fees and received a servicing fee.
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Chicago #1 Portfolio - $4,800,000
Bridger sold two $2,400,000 loans secured by multiple Chicago residential investment properties on behalf of a client. The Seller had reached its in-house limit for the Borrower and did not want to turn the business away. Bridger brought a source of outside capital in to fund the loans with a simultaneously funding, and achieved an above par price for the client in the process.
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Chicago #2 Portfolio - $10,375,000
A loan portfolio secured by Chicago multifamily properties. The Seller needed an outside source of capital to alleviate a loans-to-one-borrower limit, and was concerned about losing the borrower to a local competitor. Bridger brought in multiple offers from national institutions with the best price presented within 22 days by a Phoenix-based lender.
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| Whole Loan Sales |
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Texas Multifamily Conduit Loan - $5,921,479
BankXchange successfully negotiated the sale of a $5.9 million CRE loan secured by a Texas multifamily property. The loan contained a 10-year term and was conservatively underwritten for sale into the CMBS market. The Property had strong and stable historical operations and occupancy (94.0%), seasoning of 14 months, excellent prepayment protection, and a clear payment history.
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Phoenix Medical Office - $33,490,000
Bridger sold a construction/mini-perm facility loan secured by a Phoenix medical office complex on a ground lease, with a note rate of 8.05% but no prepayment protection. The property was stabilized, however the loan had an LTV of 83% and was non-recourse. Through the Bridger network a sale transaction was structured with a Wall Street firm whereby the Seller retained an interest rate skim for the life of the loan.
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Unanchored Retail-Kansas - $2,546,783
Bridger sold this asset, a 10-year amortizing, non-recourse, fixed rate seasoned loan with an original balance of $2,600,000. The loan bears interest at 8.5%. The collateral is a 53,525 SF retail center in Lenexa, KS, anchored by a health/fitness club which occupies 53.1% of the center. The property was 28% vacant at the time the loan was sold.
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Mobile Home Park-Oregon - $1,813,419
The loan was non-recourse with an interest rate of 8.25%, maturing in 8.5 years. The collateral was a mobile home park negatively impacted by 68% of the homes being repossessed by finance companies, resulting in a DSCR well below break-even. The principal had bought up the repo's and was marketing them on a lease/option-to-buy basis. Bridger restructured the debt into a recourse loan with a senior A-piece mortgage of $1,540,000 and a subordinated B-piece of $257,000, and sold the two pieces to two different buyers.
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Washington D.C. Land Loan - $8,500,000
Bridger sold an $8.5 million loan on a residential-zoned land in the Washington D.C. area on behalf of an Alabama-based client bank. The loan was to a good customer of the bank and had been extended multiple time. Regulators had increasingly pressured the bank to commence collection proceedings given the delays in building out the property. Rather than harm the relationship, the bank engaged Bridger to identify a new lender for the loan. The loan was sold to an Illinois bank.
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San Jose Office Building - $19,875,954
A national conduit lender engaged Bridger to sell a sub-performing loan which they were unable to securitize. The $19.8 million loan was secured by a Class “A”” Silicon Valley office building encumbered by vacant space, leased but not occupied tenancies, overmarket rents and a 24% market vacancy factor. The Seller set what appeared to be an unrealistically high price, however through broad coverage of network contacts known to buy sub-performing debt, Bridger was able to generate several offers including one which met the Seller’s requirements.
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| New Loan Originations |
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Tiburon Fitness Club - $5,621,000
Bridger was engaged to arrange a $5,621,000 refinancing for a non-profit swim and tennis facility in Tiburon, CA. The loan was introduced to 10 banks via a comprehensive package created by Bridger. The strategy was to seek local banks as well as to identify national banks with a lending platform for non-profits. The two most competitive quotes included one local bank and one national bank with a specialty lending group focused on fitness facilities. A 10 year, fixed rate, non-recourse loan was obtained with a 6.25% rate and a 30 year amortization. In addition, the bank allowed for a 9 month interest only period while the final $1.1 million of loan proceeds were drawn for capital expenditures. Both the strategy and the ultimate result far exceeded the borrower's objectives.
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Lake Tahoe Condominium Construction Loan - $1,200,000
Bridger was engaged to arrange $1,200,000 in construction financing to build a 7-unit condominium project in Lake Tahoe, CA. The borrowers contributed land valued at $650,000 and had $500,000 to put down. Bridger prepared and submitted loan proposal packages which were sent to a target list of California banks; ultimately introducing the borrowers to one that provided "best pricing" for the project.
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San Francisco Office Building - $2,500,000
Bridger was engaged to arrange $2,500,000 in acquisition financing for a 20,500 sf office building in San Francisco. The borrower had $700,000 (22%) to put down however the subject building was 100% vacant. Bridger structured a loan which included additional collateral in the form of a 2nd mortgage on 8 leased townhomes developed by the borrower. The application was marketed to several local institutions with a request for best pricing available, and a community bank came up with an attractive pricing package which the borrower accepted.
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| Participations |
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East Bay (San Francisco) Office - $2,000,000
A $1,500,000 participation in a $2,000,000 term loan was sold through BankXchange to alleviate a borrower concentration issue. The collateral property was a partially owner-occupied, renovated office/industrial building in Emeryville, CA. A condensed marketing period strategy was employed and five bids received within a matter of days.
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California Multifamily - $5,772,943
A 95% participation in this loan was sold on a servicing-retained basis within one week of going to market. The loan was originated by an Oregon institution and was sold to a California community bank that had just received $70 million in new deposits which had to be deployed. The loan is secured by a stabilized multifamily property located in suburban Sacramento, CA.
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Industrial - Sacramento, CA - $957,235
This asset was sold through BankXchange by a Pacific Northwest client, to a community bank in California on a servicing-retained basis. The Seller engaged Bridger to solve a loans-to-one-borrower concentration challenge which constricted new lending. The loan is a seasoned, 10-year, amortizing loan bearing interest at 1-Year Treasuries plus 250 bps. The collateral is a 35,000 SF industrial complex in Sacramento, CA, which had just undergone a repositioning whereby most tenancies were emptied out, renovation work completed and spaces remarketed to higher paying users.
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Western States Portfolio - $78,600,000
Bridger sold a 90% participation on a servicing retained basis for a price above-par, found the optimal purchaser for the portfolio, and closed the transaction within record time. The portfolio consisted of 19 loans with balances ranging from $800,000 to $12.6 million and was geographically diverse in several major metropolitan areas. Both buyer and seller were motivated to consummate the transaction before quarter end. The seller was able to realize significant embedded profits from existing loans that they choose to harvest through a strategic quarter-end sale.
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| Other Loan Restructures |
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Silicon Valley Office - $1,063,000
Bridger restructured a restrictive conduit loan secured by a Silicon Valley office property. A creative solution resulted in an unscheduled prepayment, which achieved the borrower's need to remove impediments to a refinance of the property.
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