Colony Capital Acquisitions won the bidding process on a sale of equity interest in 1,200 commercial mortgages the Federal Deposit Insurance Corp. (FDIC) seized from depository institutions that failed within the past 18 months. FDIC created a limited liability company, called a multibank structured transaction, to hold commercial real estate assets from 22 failed bank receiverships. As winner of the bidding process, Los Angeles-based Colony Capital purchases a 40% ownership interest in the company. The commercial real estate loans comprising the company bear a combined unpaid principal balance of $1.02bn and are 70% delinquent by loan count, according to an FDIC statement Friday. Colony Capital paid $90.5m for its 40% equity stake – equal to around 44% of the unpaid principal balance of the assets. Colony Capital will manage, service and provide for ultimate disposition of the assets. The participating FDIC receiverships retain ownership of the remaining 60% equity interest in the limited liability company. The news comes after a record year of bank failures, as 140 FDIC-insured institutions were shut down by regulators in 2009. The FDIC in early October sold an equity interest in a transaction — bearing $4.5bn of assets from failed Corus Bank — to Starwood Capital Group. An FDIC source confirmed to HousingWire the department is also looking to sell rights to a mortgage-servicing portfolio previously held by Amtrust Bank. FDIC could not disclose the portfolio’s worth, but indicated a sale is desired in Q210. Write to Diana Golobay.
FDIC Sells Equity Stake in $1bn Portfolio of Distressed CRE Loans
Most Popular Articles
Latest Articles
The best real estate podcasts for agents and brokers in 2024
The best real estate podcasts to motivate, inspire, entertain and enlighten you this year.
-
Home sellers saw their profits shrink in the first quarter: Attom
-
If reelected, Trump could seek greater control over Federal Reserve
-
Acra CEO Keith Lind on staying the course amid choppy waters in non-QM
-
HUD walks back some proposed changes to HECM for Purchase program
-
Retirement confidence hasn’t fully recovered, but survey shows hope for future prospects