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Up Front: UNREAL ESTATE
THE RTC'S LAST FIRE SALE
THE RESOLUTION TRUST Corp. is hanging up its gavel. For three days in December, the 6-year-old agency will be holding a "going out of business" sale, auctioning off about $700 million in loans.
Interest in the last--and largest--RTC auction is high. Over 250 bidders plan to show up at the convention center in downtown Kansas City. On the block are loans on single-family homes in California and New Jersey, on a commercial office building in New York, and on a number of churches in Florida, Texas, and other states. The largest single asset up for sale: a $19 million loan on a golf and country club in Hilton Head, S.C.
The auction may mark the RTC's swan song, but the cleanup from the savings and loan debacle goes on. Although the agency has already sold off more than $450 billion in assets--recovering about 87 cents on the dollar--about $8 billion in assets remain. Those hard-to-sell assets will be transferred to the Federal Deposit Insurance Corp.EDITED BY IRA SAGER, WITH PAUL ENG By Amy Barrett