NEWS ANALYSIS: GMACCM For Sale, But Will it Close?

Will General Motors get its price for GMAC Commercial Mortgage, the nation's largest commercial servicer?

Maybe, maybe not, but according to some commercial mortgage executives, GM's timing couldn't be worse.

"It's a tough sell," said one veteran commercial executive, requesting anonymity. "With GM now on the market, that means 70% of all commercial (servicing) portfolios are for sale."

Although the 70% number is a bit of an exaggeration, one thing is for certain:

Lend Lease Corp., Atlanta, so far has failed to unload its commercial servicing division, CapMark Services, which means there's plenty of "supply" when it comes to commercial mortgage receivables.

Too much supply often results in weak bids, weak that is, if you happen to be on the sell side. Falling interest rates and concerns over terrorism insurance don't help either. (GMACCM held the mortgage on the Twin Towers of the World Trade Center.)

Moreover, just a few months ago GMACCM, as well as Prudential Asset Resources, Dallas, were being mentioned as the most likely candidates to buy CapMark. (CapMark officials would neither confirm nor deny that it's for sale.)