Bank of America has agreed to sell a portfolio of commercial mortgages valued at roughly $800 million to a group of investors reported the Wall Street Journal. A venture of Square Mile Capital Management LLC , Invesco Ltd. and a fund managed by Canyon Capital Realty Advisors LLC is buying the portfolio, a mix of performing and nonperforming loans tied to 32 properties, at a discount of 20-25% off the face value. The loans in the portfolio are backed by buildings in 12 states, and reportedly about three-quarters of them are performing.
The deal is among the largest commercial mortgage portfolio sales of the year, coming as many banks continue to shed loans made during the market's peak reported the WSJ. The eight-story Renaissance Centre office building at 405 N. King Street in Wilmington, Delaware, and the Bank of America Tower in St. Louis are both included in the portfolio. The article also notes that this sale follows others that have Bank of America dropping assets that aren't part of its core businessnes; the bank recently sold an $8,6 billion Canadian credit card portfolio, a $8.3 bllion stake in China Construction Bank Corp. and a $1.5 billion stake in HCA Holdings Inc.
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