Commercial Real Estate Direct Staff Report

Associated Bank of Milwaukee is offering for sale a portfolio of 70 subperforming and nonperforming loans with a balance of $28.6 million.

The bank, the biggest in Wisconsin, has tapped Garnet Capital of Harrison, N.Y., to market the portfolio for sale.

The loans in the portfolio, which have recourse to their borrowers, are backed by a mix of income-producing and owner-occupied properties. Collateral is comprised of a mix of retail, office and multifamily properties, as well as single-family homes that are being rented. Roughly half the portfolio, by balance, is backed by properties in Illinois, and one-third by properties in Wisconsin.

The $22 billion-asset institution has sharply reduced the volume of nonperforming assets on its balance sheet, to $287.8 million as of the end of last year from $1.1 billion in 2009.

Garnet recently started soliciting investor interest in the portfolio and expects to take offers on March 20.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.