In a recent article with GlobeSt. titled, “What’s Behind Matthews’ New Note Sale Platform,” Vice President of Auction Services Robert Anderson, discusses how Matthews™ is leveraging its auction expertise to capitalize on a shifting commercial real estate landscape, and expand access to note sale opportunities for a wider range of buyers.

 

The higher-for-longer interest rate environment has created significant challenges for many commercial real estate investors. However, it’s also generating new opportunities. Lenders are increasingly selling notes off their books to redeploy capital into more attractive, higher-yielding loans. As a result, the market for real estate note sales is growing — especially for investors seeking upside potential.

With a well-established auction business already in place, Matthews™ is uniquely positioned to connect motivated buyers with these opportunities. Robert Anderson, VP of Auction Services, will lead the firm’s new note sale platform and has developed a unique strategy to ensure independent “Main Street” CRE buyers gain access to deals they might not otherwise see.

 

Traditional note sales typically pool dozens of loans together — often with price tags in the hundreds of millions — catering to large institutional buyers. However, not every loan makes it into those final pools. The remainder often becomes standalone opportunities ideal for smaller investors.

“There is a question about what to do with the more challenging and one-off middle-market deals,” explains Anderson. “We’ve put together a strategy with our partnership through Xchange.Loans to use their technology to help facilitate these middle-market loan sales. I think that helps us respond to lender demand as rates have stayed higher.”

Anderson anticipates that note sale availability will continue to rise, driven by persistently high interest rates, a “wall of maturities,” and slowing performance in certain asset classes like office. Even if rates decline later this year, it won’t significantly diminish the robust activity expected in the note sale space.

“We’re anticipating a much larger uptick,” says Anderson. “Banks have a lot more control when they are selling notes off their books. Liquidity drives the market activity.”

 

At the heart of Matthews’ new platform is a tech-enabled approach designed to streamline deal sourcing and execution. Building on the success of its existing auction model, Matthews pairs its experienced brokerage team and local market experts with technology to maximize transaction efficiency and certainty of execution.

“It gives us greater certainty of execution and transactional efficiency,” says Anderson. Through Matthews’ partnership with Xchange.Loans — a sealed-bid, auction-style platform — lenders can exercise more control over the sale process while simultaneously reaching a broader pool of buyers, including family offices, private regional groups, professional investors, and institutional players.

“This platform is the perfect blend,” Anderson adds. “We do private capital real estate transactions very well, and we know those buyers want distressed opportunities. This is a way for us to provide that while also giving our sellers and lenders an enhanced alternative to sell middle-market note deals.”

 

Read the full article here to learn more about how Matthews™ is unlocking new opportunities for CRE buyers through their innovative note sale platform.