SANTA MONICA, CA-Investment vehicles managed by Colony Capital have paid $90.5 million for a 40% interest in an LLC created by the FDIC to hold assets of 22 failed-bank receiverships. According to the Century City-based firm and the FDIC, Colony was one of 21 bidders who vied for the 40% ownership interest in the new LLC, which owns a portfolio of approximately 1,200 distressed commercial real estate loans with an unpaid principal balance of $1.02 billion, of which 70% were delinquent.

As the LLC’s managing equity owner, Colony Capital will provide for the management, servicing and ultimate disposition of the LLC’s assets. The participating FDIC receiverships will hold the remaining 60% equity interest in the LLC. The portfolio was effectively acquired at approximately 44% of the unpaid principal balance of the loans, with financing that includes $233 million of notes provided by the FDIC. Deutsche Bank served as adviser to the FDIC on the sale of the 40% LLC interest to Colony.

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

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