Carlton Group to Auction $47m of Distressed Loans

Distressed assets are moving as the extent of the real estate crisis unwinds and investors see opportunity in reduced prices — and the trend is not isolated to residential properties. The Los Angeles office of the Carlton Group will auction a portfolio of sub- and nonperforming commercial real estate, condominium and land development loans totaling $47m on behalf on an undisclosed financial institution based on the west coast. Howard Michaels, chairman of Carlton Advisory Services, said opportunistic loan buyers, developers and targeted land buyers will likely represent the bidding parties. “This loan sale continues to provide investors with an opportunity to acquire loan assets for significant discounts to value as financial institutions continue to deleverage their balance sheets providing investors with an excellent financial opportunity,” he said in a release. In addition to six single-family homes in Los Angeles, the portfolio’s assets include a 20-unit condominium building with excess residential land, 20,000 square feet of commercial land and a 29-unit motel located on the Pacific Coast Highway; 40,000 square feet of vacant commercial land located in a urban infill location in Los Angeles and six living/work lofts, 54% complete, located north of Los Angeles. Of the 14 loans in the portfolio, 12 are secured by collateral in California. The remaining assets are in Nevada and Georgia. The auction will be conducted by sealed bid, and bids are due July 15. The portfolio is in addition to more than $300m in loan and real-estate-owned (REO) sales Carlton Group is marketing. Write to Austin Kilgore.