SALT LAKE CITY, UT - SilverLeaf Financial, a private equity firm specializing in buying distressed debt, recently announced their latest acquisition of six non-performing notes secured by various apartment complexes in Georgia. The aggregate unpaid balance of the notes totals $16,611,579.
Depressed market conditions coupled with overleverage factored into the default. The underlying collateral is located within the Atlanta Metro area, and comprises 751 total apartment units. The subject loans originated between 2002-2008, for the purpose of acquiring the complexes.
Shane Baldwin, a Principal of SilverLeaf, said, "We liked the collateral, and felt comfortable with the location of the apartment complexes."
The Southeast market is seeing a continued increase in distressed debt volume. Last month a Daily News article reported distressed commercial real estate in the U.S. now totals $181.1 Billion, an increase of $.05 Billion since the second quarter of 2011. They reported multi-family assets account for $36 Billion of that number. Both CMBS trusts and U.S. banks have resolved a comparably small portion of their distressed debt from a year ago.
The firm continues to be active buyers in the debt market this quarter, while staying true to their mode of operation. Baldwin commented, "Our investment platform incorporates a strategy in which we acquire loans and loan portfolios that are priced below the intrinsic value. In the event we exhaust our work-out or restructuring options, the hope is we own the real estate at a very good value."
This latest purchase brings SilverLeaf Financial's acquisition total to $647 Million of face value non-performing notes since the company's inception. As part of the firm's continued focus on commercial real estate-related debt opportunities, SilverLeaf intends to purchase additional loans that match their opportunistic strategy.
Headquartered in Salt Lake City, Utah, SilverLeaf Financial has been acquiring non-performing commercial loans secured by first position trust deeds since late 2008. These assets are acquired from the FDIC, regional banks, special servicers and other financial institutions for the purpose of future monetization.