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DebtX Scoring with U.S. Loans, Bank Failures
07/01/2002
DebtX, a Boston-based loan sale advisory company that uses an online auction platform, has received the nod to assist with the sale of more than $700 million in loans underwritten by the U.S. Small Business Administration. The assignment comes as DebtX has been increasing its staffing, profile and market share, said Kingsley Greenland, president and founder. "The Small Business Association transaction is another example of how the Internet can help lenders improve the management of their performing and non-performing debt," he said. Insignia/ESG is handling the sale for the Small Business Administration.
The company was founded two years ago with the aim of creating a liquid secondary market for commercial real estate through a live web-based auction and allowing portfolio managers to do their jobs more effectively. "An online auction is a more active process and allows for better pricing," Greenland said, noting that this creates more price transparency. DebtX targets a full range of commercial loans, with performing loans making up about 85% of the loans auctioned. In its first year, the company completed more than $100 million in auctions. That grew to about $400 million last year, with a goal of reaching $800 million to $1.2 billion in 2002, he said.
DebtX, which emphasizes its analytics and standardized documentation, has now reached the break-even point. It is working to bring in more sellers and has been successful in luring repeat business back to the site. The company recently hired longtime commercial real estate professional Patrick Blount as director of sales for middle-market institutions to assist with this effort out of its new office in Oklahoma City.
From Real Estate Finance & Investment
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