F. Scott Fitzgerald wrote that “The rich are different from you and me.” To which Ernest Hemingway sarcastically responded, “Yes, they have more money.” When it comes to investing on the large scale we’ve seen lately from the Blackstone Group, Colony Capital and other deep-pocketed players, you could say that both Fitzgerald and Hemingway have a point. And even though most investors can’t, don’t or won’t swim in those deep waters, recent deals by these players provide solid guidance.
Certainly, Los Angeles-based Colony Capital didn’t acquire its 40% stake in FDIC loan portfolios with a face value of well over $3 billion by purchasing one note at a time from the federal agency over the course of several years. This tally was reached in just about a year. Yet many of the same principles apply regardless of the scale of the deal. “It’s a continuum, from a whole loan bought by a single investor to a joint venture between the investor and the FDIC at the other extreme,” Jon Barry, Atlanta-based national managing director of Colliers International’s asset resolutions team, tells Distressed Assets Investor.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
