KDX Ventures, a joint venture between DebtX and boutique investment banking firm KEMA Advisors, has successfully auctioned $306 million in nonperforming multifamily and healthcare loans for the U.S. Department of Housing and Urban Development (HUD).
According to the company, 67 bidders submitted more than 200 individual and pool bids for the 26 assets offered for sale in April. The 12 winning bids generated proceeds of more than 48% of unpaid principal balance. All winning bids were submitted on individual assets.
‘The strong proceeds from this HUD sale demonstrate the pent-up demand and liquidity for commercial real estate assets,’ says DebtX CEO Kingsley Greenland. ‘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.’
KDX Ventures is HUD's exclusive loan-sale adviser.