Nara Bancorp sold a $61 million pool of troubled commercial mortgages to Garrison Investment Group of New York for about 63 cents on the dollar.
The Los Angeles-based bank said it will actually book a pre-tax gain of $3.8 million on the deal because it had marked down the assets but then sold them at a better-than-expected price to the hedge fund.
"Market conditions and loan performance have improved slightly, which resulted in a better than expected sales price," Nara said in a statement.
Roughly 45% of the loans were backed by hospitality properties. Retail (21.8%) accounted for the rest followed by gas station/car wash (17.9%), and mixed-use (15.7%) properties.
Roughly 43% of the CRE loans sold were on properties located in California — primarily in markets outside of major cities.
