Loan sales represent a large volume of the distressed asset transactions that have been closing so far in 2010.  Lenders and special servicers’ decisions to hold or sell specific loans are generally based on a net present value (NPV) analysis of each asset.  This critical analysis accounts for the respective costs to the lender if the loan is held or acquired as REO; the capital required to then stabilize and manage the asset; and the time required to foreclose (in some states, this can be longer than a year).  With certain markets and asset values of some property types continuing to deteriorate, the conclusion is often that a loan sale makes more sense to the lender than a hold.

NAI Global and First Financial Network (www.ffncorp.com) have a strategic alliance that leverages NAI’s global presence in real estate sales and FFN’s unparalleled experience in the loan sale sector to support all asset disposition needs.  First Financial Network helps institutions manage risk and enhance financial performance by gaining maximum value on their portfolios through comprehensive, customized loan sale services.  Whether a one-off trade is the objective or the sale of a portfolio consisting of multiple loans is required, FFN consistently maximizes value through portfolio analysis, loan valuation, due diligence management, bid package preparation, document imaging, target marketing, closing, transfer and post-closing activities.  In addition, NAI Global adds great value to the partnership by providing local market intelligence through its 5,000 brokers in 325 offices in 55 countries.

FFN’s detailed valuation analyses and loan sale transactions are executed by industry recognized senior professionals with an average tenure of 20 years of loan sale experience serving national, regional and local banks, CMBS special servicers, private capital lenders and the FDIC.  FFN’s dedicated loan sale professionals have closed billions of dollars in performing and non-performing residential, commercial, land and consumer loans in over 28 countries.

Through the efforts of the NAI/FFN team, FFN is bringing to market a $1 billion performing and non-performing loan portfolio, secured by commercial real estate, C&I, land and residential developments on behalf of a major financial institution.  The collateral for these loans is located primarily in the Southeastern US.  And, the transaction is scheduled to close by the end of September.  If you have questions about this offering, please contact First Financial Network at 405.748.4100.

-Jerry Monash

Gerald Monash, CCIM is Executive Vice President at NAI Global.  Jerry leads NAI’s Investment Services Group and is a loan sales specialist on NAI’s Special Asset Solutions team.