August 16, 2016
SBA Hot Topic Tuesday — The $11MM Western SBA 504 Portfolio
By Bob Coleman
Editor, SBA Hot Topic Tuesday
Clark Street Capital’s Bank Asset Network (“BAN”) proudly presents: “The $11MM Western SBA 504 Portfolio.” This exclusively-offered portfolio is offered for sale by two institutions (“Seller”). Highlights include:
- A total unpaid principal balance of $11,204,589, comprised of 6 loans
- All loans are performing SBA 504 1st mortgages on owner-occupied commercial real estate
- The largest asset, a recently originated SBA 504 1st mortgage on an industrial building, comprises 37% of the portfolio
- Portfolio has a weighted average coupon of 5.22%
- All loans have prepayment penalties
- Collateral types include: Industrial (69%), Hotel (25%) and Office Building (6%)
- Assets are located in CA (73%), TX (25%), and NV (2%)
- All loans will trade for a premium to par and any bids below par will not be entertained
Files are scanned and available in a secure deal room and organized by credit, collateral, legal, and correspondence with an Asset Summary Report, financial statements, and collateral information. Based on the information presented, a buyer should be able to complete the vast majority of their due diligence remotely.
1. Please review the executive summary and execute the confidentiality agreement. If you are viewing this document from an email link, the link to the confidentiality agreement is in the upper left hand corner (“View Agreement”) of your screen.
2. Upon approval, buyers will receive an email notification when complete due diligence materials are available for review.
3. The BAN Deal Room will have loan files organized by credit, collateral, legal, and correspondence with an Asset Summary Report, financial statements, and collateral information. Based on the information presented, a buyer should be able to complete the vast majority of their due diligence remotely.
4. The format of the offering is a negotiated sale. On or before the indicative bid date, the Seller will consider bids on the assets.
5. Bids should be on the entirety of the portfolio or on individual loans. Portfolio bids must be allocated amongst the loans, as there are two institutions participating in the sale.
6. Indicative bids are due by Monday, August 29, 2016 at 5:00 PM CST.