WASHINGTON, DC-A joint venture consisting of Gibraltar--a subsidiary of Toll Brothers, locally based Milestone Merchant Partners and certain funds managed by Oaktree Capital Managed has closed a structured transaction with the Federal Deposit Insurance Corp. The JV has purchased a portfolio of largely nonperforming loans worth $1.7 billion. The unpaid balance of the portfolio is approximately $1.32 billion and has a book value of $382 million. All of the assets are from the former Amtrust Bank, which FDIC took into receivership in December 2009. 

The portfolio includes approximately 200 loans and 80 REO properties that are primarily residential and located in 17 states. The average loan size is approximately $6.1 million. The venture acquired a 40% stake in the limited liability company created by the FDIC to hold the loans and REO assets. The FDIC is retaining the remaining 60% equity interest and providing approximately $303 million of non-recourse financing at zero interest for seven years as well as a non-recourse advance facility of approximately $40 million for additional working capital needs.

Oaktree contributed 79% of the private partner capital, Toll Brothers contributed 20%, and Milestone 1%. Milestone did not return a call to GlobeSt.com in time for publication.