Auction.com to Sell Senior Participation Interest in Two Performing Multifamily Loans in Gilbert, Arizona

Indicative bids due Oct. 23rd; Final auction scheduled for Nov. 6th

IRVINE, CALIF. – October 6, 2014 – Auction.com, LLC, the nation’s leading online real estate marketplace, has been retained as the exclusive loan sale advisor for the senior participation interest, including servicing rights, for two 2007 vintage notes collateralized by two class A multifamily properties in Gilbert, Arizona.

Constructed in 2007 and with a June 2014 occupancy of 94 percent, the two garden-style luxury apartment complexes total 624 units and offer market-leading finishes and amenities.

The subject notes, which mature in April 2017, are fixed-rate, interest-only loans at a 5.62 percent coupon. They are cross-collateralized/cross-defaulted and thus part of a single offering. With a total unpaid principal balance of $45,000,000, the senior participation is currently held by a government sponsored enterprise (GSE). The junior interest, which is not part of this offering, is held by an affiliate of the borrower, an owner/developer of class A multifamily properties with 3,550 units currently under management and an annual revenue of $25 Million.

Regarding the value of the underlying collateral, RCAnalytics indicates significant liquidity in the past year in the Southeastern Phoenix MSA.  Multifamily apartment complexes built after 1995 have traded at a notably tight 5-5.5 percent cap rate range. 

Indicative bids are due no later than Oct. 23rd and the final auction is scheduled for Nov. 6th. To learn more, visit www.auction.com/arizonamfnotes or contact:

Darren Foster at (949) 208-8506 or dfoster@auction.com 

Grant Wiley at (949) 208-8504 or gwiley@auction.com 

Ken Rivkin at (212) 813-9010 or ken.rivkin@auction.com