INDIANAPOLIS, OCT. 26, 2009 —As part of their continuing effort to assist banks and servicers in liquidating both distressed and non-distressed commercial notes, Jones Lang LaSalle and its joint venture partner REDC today announce the offering of a $2,085,000 non-performing loan secured by a 328,445-square-foot mixed-use, multifamily, office/retail and storage property in Indianapolis, Indiana.  This is the first note sale offering of the joint venture online auction platform, which merges the expertise of the leading financial and services firm specializing in real estate with the leading real estate auction firm.  The property, called Keystone at Fall Creek, was valued at $10,000,000 as recently as 2006.

 

“We believe the online auction platform will be a formidable tool in maximizing the value of this note for ACAP Ventures, LLC.  Non-performing notes of this size tend to get lost in the shuffle of higher profile portfolio sales and this format will give us exposure to a wide array of potential investors, both within the Indianapolis market and across the United States,” said Mike Mounts, managing director of Jones Lang LaSalle’s Real Estate Investment Banking team.

 

The property includes a 15-story multifamily building and an eight-story building, as well as 35,000+ square feet of office and retail space and 287self-storage units and vacant space. It sits on more than six acres and is zoned C-2 for office and apartment use.  Keystone at Fall Creek is a well-known landmark in the Indianapolis community—built in 1974; it was the very first mixed-use complex in the city.  Originally called The VIP, it was known as the “crown jewel” of Keystone Boulevard.

 

“This is the first of many note sales to be auctioned off through our online disposition platform as the demand for optimal property disposal continues to grow.  Note holders, banks and special servicers have been seeking ways to consolidate and monetize loans of all sizes and rid them from their balance sheets,” said Ken Rivkin, managing director of REDC.  “This auction platform puts the control in the hands of the seller with a minimum bid and allows the transaction to happen in the most secure and timely fashion.”

 

The online auction for the Keystone note will commence November 12th with a bidding end date on November 18th.  The auction bidding starts $600,000.  Interested parties may now register online to receive note auction updates and bid at www.jll.com/auctions or www.auction.com.

 

Financial institutions can auction notes of all property types and a variety of debt instruments including first liens, second mortgages, whole notes, and sub-performing or non-performing notes on the disposition platform. The online format allows sellers to obtain maximum pricing through program efficiency and a transparent bidding process that sets a realistic benchmark for pricing through broader market exposure.  In addition, sellers incur no upfront costs, including marketing of the notes.  Buyers are pre-qualified and given full and complete access to a data vault of market intelligence that supports due diligence surrounding the disposition of notes.  The auction platform creates pricing discovery for buyers and sellers alike, streamlines sales in a timely manner and provides closing certainty through a transparent process that meets all federal regulations.

 

 

Through its Value Recovery Services, Jones Lang LaSalle’s is focusing its extensive expertise in all facets of commercial real estate to provide specialized services to clients that are affected by the current financial crisis.  These services include helping financial institutions address the operational, occupancy and cost reduction needs resulting from the rapid pace of mergers and acquisitions in that industry.  They also include advising those financial institutions with troubled loans and foreclosed real estate (REO) on their balance sheets, including note sales and disposition of REO.  Additionally, the firm is providing loan work-out and receivership services, asset and property management, leasing and disposition services for clients with assets experiencing financial difficulties or foreclosure.  The firm also is helping clients raise capital by monetizing owned facilities through sale-leaseback transactions and providing creative asset management and financial solutions to hotel owners and investors struggling in current markets, and assisting owners and lenders in developing asset value creation and recapitalization strategies for underperforming investment properties.

 

 

Headquartered in Irvine, California, REDC was launched in 1990. REDC pioneered the real estate foreclosed auction model to help banks elevate their inventory of foreclosed houses. Since its inception, REDC has continued to innovate and connect banks and lenders with consumers. REDC has auctioned 50,000+ foreclosed houses for more than $5 billion since the start of the nation’s current foreclosure crisis. REDC recently launched its Default Solutions division and is rapidly morphing into various other real estate arenas, including commercial real estate auctions. For more information about REDC, visit www.Auction.com.

 

 

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.4 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $46 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.

 

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