Synergy Resolution, operated by a group of real estate veterans,works to help banks resolve non-performing real estate assets. Itsprincipals have extensive experience in the development of homes,lots and commercial properties, and have resolved billions ofdollars in real estate debt.

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"We're happy to do the work and let the banks do what they do,"Randy Herron, a Synergy Resolution principal, tells GlobeSt.com.The group has at least five other deals in the works, he says, andis getting interest from other banks looking to clean up theirbalance sheets, especially since October's unraveling of financialmarkets.

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Herron describes the selling bank as a "community bank" in theAtlanta metropolitan area, but is not allowed to disclose itsidentity. He did say, however, that the bank is not among threeothers within the local suburbs that have failed in recent months:Integrity Bank and Alpha Bank & Trust, both in Alpharetta, andCommunity Bank of Loganville.

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GRIP, sponsored by Philadelphia-based Grosvenor InvestmentManagement, is a private partnership that invests in distressedfor-sale residential projects and associated debt nationwide.Investments include senior loans, mezzanine debt and equity. Thisis the second investment for the $100-million fund, withapproximately 10% invested thus far.

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The Atlanta loan portfolio is collateralized by 32 completedsingle-family homes plus 1,216 finished lots, all located withinmetro Atlanta. The investment is consistent with GRIP's strategy ofbuying discounted assets and debt in urban infill and suburbanmarkets.

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"We're investing in a strong partner in Synergy, in a targetmarket which we believe will recover earlier than most, and expectto earn opportunistic returns while still having the security of asenior position," says David Reiner, managing director of GrosvenorInvestment Management. "Going forward, as more and more financialinstitutions are becoming distressed sellers of residential assets,we expect there to be intriguing opportunities for the fund to bean opportunistic buyer and capital provider in this area."

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