The Federal Deposit Insurance Corporation has sold stakes in two pools of nonperforming real estate loans to two private equity firm-led consortiums for a total of $40.5 million, according to a statement from the US banking regulator.
Hudson Realty Capital and a consortium of investors have acquired a $139 million portfolio of 97 Colorado loans from the FDIC for $14.9 million. The New York-based real estate investment firm paid roughly 43 cents on the dollar for its 25 percent stake in the acquisition, development and construction loan portfolio. The loans, which include vacant land, lots, residential development inventory and multi-family and mixed-use properties located throughout Colorado, are predominantly non-performing.
In a separate deal, the FDIC also announced the sale of a $158 million portfolio of 116 Colorado loans to a consortium led by Acorn Loan Portfolio Private Owner IV and including Oaktree Capital Management. The deal saw the consortium acquire a 25 percent stake in the portfolio for $25.6 million – equivalent to 65 cents on the dollar. Los Angeles-based Acorn Loan Portfolio Private Owner IV is owned by Calista Corporation and FACP Mortgage Investments, entities controlled by Oaktree.
Both consortiums won the FDIC portfolios through the regulator's Small Investor Program structured-sale process.
Hudson partnered with Stamford, Connecticut-based Soundview Real Estate Partners and Denver-based JCR Capital Investment Corp. on the deal. After the return of equity, the Hudson-led consortium’s ownership stake will increase to 50 percent. Hudson will provide for the management, servicing and eventual disposition of the assets, and work to resolve the residential and commercial property loans over the next several years.
Renee Lewis, Hudson's managing director of portfolio investments, told PERE that 75 percent of the loans were nonperforming and 40 percent secured by land assets. The land loans include improved and unimproved lots for both commercial and residential. She added that the firm expected to achieve the highest asset value over the hold period through workouts, restructurings, discounted payoffs, foreclosures, repositioning and sales.
The FDIC initially gained control of the loan pools from FirsTier Bank after the Louisville, Colorado-based bank's failure in January 2011.