DebtX and boutique investment banking firm KEMA have signed a multi-year agreement with the U.S. Department of Housing and Urban Development (HUD) to sell commercial real estate loans via www.debtx.com.
Operating as KDX Ventures (KDX), DebtX and KEMA will assist HUD in selling some of its multifamily and healthcare portfolio loans. The loans were primarily assigned to HUD after default by a borrower or co-insuring lender. The first sale under the agreement is expected to be executed in early 2009.
DebtX and KEMA are a proven team with complementary skill sets that will enable HUD to maximize recoveries from the sale of HUD-held loans, said DebtX CEO Kingsley Greenland. Were pleased to work again with HUD to help the agency implement its loan sale strategy.
The contract announced today is HUDs most recent engagement of DebtX and KEMA. In 2005, DebtX and KEMA collaborated to sell a loan portfolio totaling approximately $300 million.
The agreement between HUD and KDX enables the agency to obtain all valuation, due diligence, and loan sale services from a single and tightly integrated advisor, said KEMA President Kirk Michel. This integrated approach, along with KEMAs local presence in Washington D.C., will enable KDX to efficiently and expeditiously sell loans within the scope of the agencys mission.
KDX Ventures was created under The U.S. Small Business Administrations (SBA) Mentor-Protégé program, which is designed to enhance the capability of 8(a) participants to compete more successfully for federal government contracts. The program encourages private-sector relationships and expands SBAs efforts to identify and respond to the developmental needs of 8(a) clients.
Aside from HUD, DebtX signed a five-year agreement with the Federal Deposit Insurance Corp. (FDIC) in December 2007 to sell loans in receivership. DebtX is currently engaged to sell more than $424 million in loans from two FDIC receiverships. The first of these portfolios bids on Nov. 10.