Institutional Seller Privacy & Security
Asset and Financial Institution Privacy
CRE Note Exchange (CRE Xchange) understands financial institutions requirements and concerns regarding property owner privacy, note/asset details privacy, buyer identity, buyer background and buyer performance and experience assessment, regarding the sales of distressed notes and assets. Such issues include:
- Federal Patriot Act requirements pertaining the Equity Buyer.
- Discreet transaction so only a few participants are aware of transaction details.
- Assuring current property owners distressed status is kept as private as possible.
- Pre-Qualifying Buyers to verify transactional experience and verification of funds.
CRE Xchange also realizes that in order to efficiently sell in a reasonable period of time, a diverse NPN portfolio encompassing assets strewn across the Nation, comprising of various commercial real estate asset classes (ie: Retail, Industrial, Multi-Unit), requires prior relationships with hundreds if not thousands of local and experienced Equity Buyers.
The challenge thus becomes to efficiently reach out to a multitude of Equity Buyers while maintaining a discreet and secure transaction to satisfy the concerns of financial institutions as outlined above. CRE Xchange has developed such a secure and efficient transactional process to accomplish both of these objectives as outlined in our Asset Trading Desk webpage. The CRE Xchange security and privacy systems, and checks and balances are listed below:
Equity Buyer Pre-Vetting and Pre-Qualification:
All prospective Equity Investors are required to go through a qualification process which requires complete identification of the buying legal identity as well as the key principal identification. Also during this qualification process, the equity buyers purchasing criteria will be obtained to identify which locations and what types of commercial assets are desire for purchase. This CRE Xchange to match available assets with only Equity Buyers desiring such assets as defined below.
NPN and REO Tape sub-Grouping and 1-Offs:
If permitted by Financial Institution, the CRE Xchange Trading Desk will take each Original Raw Tape portfolio and break it down into like-kind sub-Groups and/or 1-Off Assets. Such tape grouping will take like kind commercial property types (ie: Industrial Bldg sub-Group, retail sub-Group) and group them together. Also sub-Grouping will also group commercial assets in geographical regions and/or States. (ie: Southeast, California, Northwest, etc). This allows the CRE Xchange Trading Desk to deliver only pertinent Assets to equity buyers who are looking for such specifics on commercial assets.
NPN and REO Asset Portfolio Masking:
Initially, CRE Xchange Trading Desk will hide and/or mask certain details of NPN and REO assets for sale, prior to delivering to pre-matched Equity Buyers. Below is a list of the Asset-Tape details, and which details are hidden and how other details are masked, as shown in the examples below;
- Selling Bank Name — Hidden
- Street Address — Hidden
- Kansas City, MO — Masked To → Western, MO.
- UPB = $3,150,377 — Masked To → $3.2 Mil
- CMV = $2,830,000 — Masked To → $2.8 Mil
- # of Units = 215 — Masked To → Units = 210
- Total sq ft = 168,584 — Masked to → sq ft= 167,000
NPN and REO Portfolio Tape Watermarking:
Each Original Raw Tape portfolio and each sub-Group Tape will be converted to a PDF document and Watermarked with CRE Xchange logo, and other identification. Such Watermarking helps to insure that Tape portfolios will not be indiscriminately distributed to other parties.
Portfolio Tape Digital Rights Management:
Adobe Digital Rights Management (DRM) will be utilized on each Original Raw Tape, and each sub-Group Tape. DRM technology allows the end Equity Buyer to review the details of the Tape portfolios for a period of time, but if selected Equity Buyer decides against completing the purchase process, said DRM secured Tape will be destroyed for future use using the DRM technology.
Pre-Selected Buyers matching Distressed Asset Details:
The basic commercial property details of each sub-Group and/or actual 1-Off asset, will be matched with the acquisition criteria of each pre-Qualified Equity Investor Buyer. If a match is made with a Select Equity Buyer, than the Masked sub-Group Tape of 1-Off asset, will be deliver to the Select Equity Buyer. The CRE Xchange Trading Desk will then reach out to the Select Equity Buyer9s) and/or the Select Equity Buyer(s0 will contact CRE Xchange, to ascertain Equity Buyers level of interest in the Asset(s).
Equity Buyer MCA Execution:
A Select Equity Buyer who has expressed interest in a specific sub-Group or 1-Off Asset(s), is contacted by the CRE Xchange Trading Desk and vetting occurs to ascertain Equity Buyers level of interest. If still interested, then CRE Xchange will have Equity Buyer execute a Mutual Confidentiality Agreement (MCA) to insure the privacy of the details of the distressed Assets, property owner, as well as the identification of the selling financial institution.
Questions and Feedback
SVP of Asset Management