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By AZ Advisory Team, December 24, 2009 9:46 pm

The FDIC has received bids from over a dozen investors for a $1.1 billion dollar package of commercial real-estate loans that they acquired from various failed banks.

The portfolio consists of mostly nonperforming commercial property loans. Demand for these assets, at a discounted price, has grown intense. Investors have amassed billions of dollars to buy distressed loans and property much as investors like Sam Zell did in the early 1990s.

“A lot of investors are anxious to invest cash they have raised,” said David Tobin, a principal with Mission Capital Advisors, a loan-sale adviser.

The increased demand is welcome news for the FDIC, which is selling the portfolio of loans at a discount, while trying to limit taxpayer losses and shore up its deposit-insurance fund.

Some analysts are optimistic the price may get driven up from competing bidders.

The sale comes during a time when the FDIC is facing unprecedented challenges which make this sale the equivalent of putting a finger in the dike. As banks continue to fail, along with the estimated costs of those failures, the FDIC is urgently seeking to replenish their deposit insurance fund, which was showing a negative $8.2 billion balance at the end of September.

So far, the financial crisis has swallowed up 140 banks, leaving the FDIC with about $30 billion in real-estate debt that is available for sale for the next 12 months. That figure is double the level from a year ago.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 23, 2009 6:32 pm

The FDIC is entering into direct partnerships with buyers and retaining a long-term equity stake in the loan portfolios as it opens up to bidders one of the second-largest bulk sale of commercial property in its history. The winner is expected to be one of finance’s private equity titans. The sale is consisted of a portfolio of nonperforming loans from commercial real estate properties issued by failed lenders IndyMac, Corus and Franklin. The agency has been scrambling to raise some cash from a vast array of bank assets as the FDIC fund that insures bank deposits went red this year.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 15, 2009 11:17 pm

The Federal Deposit Insurance Corp. revealed today a significant increase in budget to deal with banks’ escalating woes which is at its fastest pace since 1992. The FDIC will boost its budget by 56% from $1.3 billion this year to $2.5 billion in 2010. They said thay will aslo increase staff by 1643 to handle bank failures.

“It will ensure that we are prepared to handle an even larger number of bank failures next year, if that becomes necessary, and to provide regulatory oversight for an even larger number of troubled institutions,” FDIC Chairman Sheila Bair said in a statement.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.