$306 Million HUD Portfolio Sold by KDX Ventures

Thu, May 13, 2010


KDX Ventures, a joint venture between Boston-based DebtX and Hillsborough, North Carolina-based KEMA Advisors, announced Wednesday that it successfully auctioned a HUD portfolio containing $306 million in nonperforming multifamily and healthcare loans.

The portfolio consisted of 25 multifamily commercial real estate loans and one healthcare loan, ranging in size from $1.6 million to $44.3 million. The collateral was located in 14 states across the country, and investors were allowed to bid on any individual loan or on pre-determined pools of loans.

According to KDX Ventures, which is HUD’s exclusive loan sale advisor, 67 bidders submitted more than 200 individual and pool bids for the 26 assets offered for sale in April. And the 12 winning bids, all submitted on individual assets, generated proceeds of more than 48 percent of unpaid principal balance.

“The strong proceeds from this HUD sale demonstrate the pent-up demand and liquidity for commercial real estate assets,” said Kingsley Greenland, DebtX CEO. “Over the past two years, investors have amassed a tremendous amount of capital to invest in commercial real estate loans, but there has been only a small amount of product available for sale.”


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