As the LLC's managing equity owner, Colony Capital will providefor the management, servicing and ultimate disposition of the LLC'sassets. The participating FDIC receiverships will hold theremaining 60% equity interest in the LLC. The portfolio waseffectively acquired at approximately 44% of the unpaid principalbalance of the loans, with financing that includes $233 million ofnotes provided by the FDIC. Deutsche Bank served as adviser to theFDIC on the sale of the 40% LLC interest to Colony.

All of the loans were from banks that have failed during thepast 18 months. Some 75% of the portfolio collateral is located inGeorgia, California, Nevada and Florida.

Colony Capital LLC is a private international investment firmfounded in 1991 by Thomas J. Barrack Jr. that has a long history ofspecializing in distressed assets. Last year, it launchedColonyFinancial Inc., a publicly held REIT that focuses onacquiring, originating and managing commercial mortgage loans.Barrack is chairman and CEO of both Colony Capital LLC and ColonyFinancial.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.