A Bankers Trust New York Corp. unit said Thursday that it will advise the Federal Deposit Insurance Corp. on selling a $375 million portfolio of nonperforming commercial mortgages.
The offering would be the largest bulk sale of commercial mortgages ever by the FDIC.
The unit, BT Realty Resources Inc., will sell the mortgages through a sealed-bid auction. BT Realty has been advising the FDIC on all aspects of the sale.
The portfolio will be marketed in the next four to six weeks, with bids due in early fall.
The loans are primarily backed by multifamily, industrial, and office properties in the Northeast. The average size of the assets is about $2.5 million.
In the past, individual FDIC regional offices have sold the mortgages. This time, mortgages from several regional offices will be combined.
150 Loans, Broken into Pools
The portfolio comprises 150 loans, which will be broken into between five and 10 pools. The offerings are aimed at both large and small investors, with each pool representative of the overall portfolio. The pools will range in size from $30 million to $70 million.
The FDIC is offering seller financing - a practice pioneered by the Resolution Trust Corp. - for the first time. In the coming sale, seller financing will be available for up to $75% of the purchase price.