As the FDIC continues to come into control of an increasinglylargevolume of loans through bank takeovers it must draw on theresourcesof the private sector to maximize value on those loans,says ThomasGalli, shareholder at Greenberg Traurig LLP, who headeda panel atWashington, DC's recently-held RealShare conference,consisting of Rich Brown, the FDIC's chief economist, and TimKruse, senior capitalmarkets specialist at the FDIC. "As asignificant bid/ask spreadcontinues to exist on pricing for loanportfolios in the privatesector, the FDIC appears to be the onlypractical opportunity in thecurrent market for the private sectorto acquire loan portfolios," hetells GlobeSt.com.

The volume of loan portfolios the FDIC will bring to market in2010through its structured transaction program will besignificantlygreater than what it brought to market in 2009, Gallisays. That means opportunities for investors in this space will beextraordinary over the next two years.

For example, large brand private equity and institutionalinvestorsare looking harder at opportunities available in theFDIC's Structured Transactions program, Galli says. "Those biddinghave found appropriate partners with infrastructure to performasset management on portfolios of modest to average loan sizeand/or geographically disbursed assets securing loans," hesays.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
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.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.