DebtX Markets for Sale $181Mln Portfolio of Commercial Mortgages

By Commercial Real Estate Direct Staff Report
November 16, 2007

DebtX is offering a $181 million portfolio of performing commercial loans and expects to complete sales by the middle of next month.

The Boston loan-sales adviser would not identify its client, but given the make-up of the portfolio, it is likely a conduit lender. The loans were originated roughly a year ago and have a weighted average fixed coupon of 5.95 percent. They have a weighted average loan-to-value ratio of 65 percent and debt-service coverage of 1.42x.

DebtX will take offers for each of the 27 individual loans in the portfolio or combinations of the loans. It will also invite offers for the portfolio as a whole.

The largest loan in the portfolio has a $23 million balance and is backed by a Texas apartment property.

In total, the portfolio has 18 apartment loans, seven on retail properties, one on a hotel and one on an office building. Their collateral is scattered among seven states, with concentrations in California, with nine properties, Texas, with five, and South Carolina, with four.

Given current market prices, the loans are likely to trade at a slight discount to par, to increase their yield.

DebtX has invited investors to turn in indicative offers by Nov. 30. Early next week, it will have due diligence information available on its website.