Wells Fargo and LNR Selling Distressed Assets
BusinessWeek reports: Wells Fargo & Co. and LNR Property Corp. are each seeking to sell about $1 billion of distressed U.S. commercial real estate loans and assets, according to people briefed on the offerings.
Wells Fargo of San Francisco, the biggest U.S. commercial real estate lender, is taking bids on $500 million to $1 billion of office and hotel mortgages and properties, said four people, who asked not to be identified because the sale is private. LNR, the largest special servicer of commercial mortgage-backed securities, is trying to sell about $1 billion of defaulted loans, two people said.
A sale would reflect an improved market for the most troubled real estate assets, said Ben Thypin, a senior analyst at global commercial property research firm Real Capital Analytics Inc. Private-equity real estate funds, which have $80 billion to invest, are optimistic that transactions will pick up, London-based researcher Preqin Ltd. said in an April 30 report.
“Until now the major banks haven’t had an incentive to sell off loans they absorbed during the crisis,” Thypin said.
View the full article on BusinessWeek: Wells Fargo and LNR Selling Distressed Assets
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