The Federal Deposit Insurance Corp. chose a consortium led by Starwood Capital Group to purchase a portion of an LLC holding $4.5 billion of assets previously owned by Corus Bank and seized by the FDIC in September. The group will pay $554 million for a 40% stake in the troubled real estate loans. The FDIC will own the balance.
The portfolio was valued at $4.5 billion and contains more than 100 loans and 23 million square feet of REO assets in a variety of property types. The group will get a stake in 102 properties, including 79 condominiums, 14 multifamily buildings, eight office facilities and one land development project, spanning markets like Los Angeles, Miami, Washington, DC, New York, Chicago and Atlanta.
In addition to Starwood, the group includes TPG Capital, Perry Capital and WLR LeFrak. The companies will be providing equal equity capital for the purchase, although Starwood will run the day-to-day operations. According to a joint statement, the newly formed company will have a five-member board, consisting of two Starwood members, two TPG members and one Perry member.
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