SOURCE: SilverLeaf Financial

April 07, 2011 11:47 ET

SilverLeaf Financial Purchases $79 Million of Commercial Paper From a Regional Bank

SALT LAKE CITY, UT--(Marketwire - April 7, 2011) - SilverLeaf Financial (silverleaf-financial.com) recently announced the acquisition of eight loans from a regional bank. The unpaid principal balance of the loans is approximately $79 M. The 2010, 2011 appraised value of the collateral secured by this purchase equals approximately $127 M. Six of the eight loans are secured by assets in Wisconsin, and the other two are located in Arizona. This recent purchase pushes SilverLeaf's acquisition total for the first quarter of 2011 over $100M. 

The associated collateral of these loans include two golf courses, luxury residential properties, developed land, raw land, retail, office, multi-family condos and industrial/warehouse complexes. 

"We were attracted to the diversity as well as quality of the assets in this portfolio," says Ben Smith, SilverLeaf's Vice President of Acquisitions. "We saw banks and special servicers make a push to sell loans by the quarter's end. This quarter was a very active one for us."

The first of the acquired notes consist of a loan secured by a golf course and resort in Flagstaff, AZ. The private course includes a 36,266 SF clubhouse, large pro shop, fitness center, spa, club bar and additional support facilities. Included with the course is a large residential development containing finished lots, residential townhomes, condos, and high-end estates. The second loan is secured by a seven story, eighty unit residential condo building located in downtown Milwaukee, WI. The third is a loan secured by 375,000 SF industrial/warehouse and 22,000 SF retail building retail building in Milwaukee, WI and Pewaukee WI respectively. The fourth loan is secured by a public golf course, and three residential lots in Hayward, WI. The fifth note is a loan secured by a boat dealership, storage, and repair facility in Milwaukee, WI. The sixth loan is secured by three separate industrial buildings located in St. Francis WI. The seventh note is secured by a 1,700 acre ranch and luxury ranch home in Tubac, AZ. The final note is secured by a 49,000 SF, fifteen unit residential condo and retail building in Manitowoc, WI. Smith noted that the work-out approach for these loans will consist of both short and long term strategies. The majority of these loans are full recourse to the borrowers.

About

Headquartered in Salt Lake City, Utah, SilverLeaf Financial focuses on acquiring non-performing commercial loans secured by first position trust deeds. These assets are acquired from the FDIC, regional banks, special servicers and other financial institutions for the purpose of future monetization. For more information, visit SilverLeaf Financial's website, http://www.SilverLeaf-Financial.com