HFF Arranges Sale of $148M Non-Performing Loan

HFF closed the sale on a non-performing loan carrying an unpaid principal balance of approximately $148 million.

Acting on behalf of a special servicer, commercial real estate and capital markets services provider HFF has closed the disposition of a non-performing loan carrying an unpaid principal balance of approximately $148 million. The loan is secured by an office portfolio totaling 900,000 square feet in Los Angeles and San Diego, Calif.

The group of office assets consists of eight properties encompassing a total of 16 buildings with an average occupancy level of just more than 60 percent. As evidenced by numbers from a second quarter report by commercial real estate services firm Cassidy Turley, the portfolio’s rather bare tenant roster belies the state of the market in both Los Angeles and San Diego. Vacancy rates in the cities are a respective 15.7 and 18.3 percent, and dropping.

Office, retail, industrial. Regardless the property type involved, non-performing loans are selling at increasing numbers. Approximately 4,000 loans totaling $72.4 billion are presently in the hands of special servicers, according to a study commercial real estate analytics provider Trepp L.L.C. In August, liquidations increased to $1.44 billion, exceeding the 12-month moving average of $1.34 billion.