Cogsville: ‘Plenty’ of Opportunity in the Commercial NPL Space



– March 25, 2011 –

Although bidders on residential nonperforming loans are griping about a lack of available product, that’s not the case over in the commercial space, according to Donald Cogsville of The Cogsville Group LLC, New York.

“Banks are more willing to sell these days than compared to a couple of years ago,” said Cogsville in a recent interview with National Mortgage News. But he also warned that it’s “not a frothy market either.”

Since July Cogsville and his partners through the Cogsville Capital Partners Fund have bought roughly $3 billion of commercial NPL product from the Federal Deposit Insurance Corp. “You might say the FDIC is a motivated seller,” he said.

The product purchased includes acquisition, development, and construction loans. In total, more than 3,900 notes have been purchased in 40 states. The firm’s NPL investment portfolio is dominated by retail, office, multifamily and industrial properties. “We buy mostly commercial but some residential,” he said.

Looking to the near term future, he estimates that the FDIC will sell at least $100 million worth of commercial mortgages through structured transactions, with commercial banks shedding another $250 billion of product. “I think CMBS players will shed about $70 billion too, so there are still lots of opportunities in the market place,” he told NMN.

Posted in The Cogsville Group News