X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-Locally based Synergy Resolution Services is assisting Grosvenor Residential Investment Partners I LP and KeyBank Real Estate Capital in their acquisition of a discounted portfolio of loans and real estate from an unnamed regional bank. The investment is structured as an $8.5-million senior participating loan covering 158 separate properties.

Synergy Resolution, operated by a group of real estate veterans, works to help banks resolve non-performing real estate assets. Its principals have extensive experience in the development of homes, lots and commercial properties, and have resolved billions of dollars in real estate debt.

“We’re happy to do the work and let the banks do what they do,” Randy Herron, a Synergy Resolution principal, tells GlobeSt.com. The group has at least five other deals in the works, he says, and is getting interest from other banks looking to clean up their balance sheets, especially since October’s unraveling of financial markets.

Herron describes the selling bank as a “community bank” in the Atlanta metropolitan area, but is not allowed to disclose its identity. He did say, however, that the bank is not among three others within the local suburbs that have failed in recent months: Integrity Bank and Alpha Bank & Trust, both in Alpharetta, and Community Bank of Loganville.

GRIP, sponsored by Philadelphia-based Grosvenor Investment Management, is a private partnership that invests in distressed for-sale residential projects and associated debt nationwide. Investments include senior loans, mezzanine debt and equity. This is the second investment for the $100-million fund, with approximately 10% invested thus far.

The Atlanta loan portfolio is collateralized by 32 completed single-family homes plus 1,216 finished lots, all located within metro Atlanta. The investment is consistent with GRIP’s strategy of buying discounted assets and debt in urban infill and suburban markets.

“We’re investing in a strong partner in Synergy, in a target market which we believe will recover earlier than most, and expect to earn opportunistic returns while still having the security of a senior position,” says David Reiner, managing director of Grosvenor Investment Management. “Going forward, as more and more financial institutions are becoming distressed sellers of residential assets, we expect there to be intriguing opportunities for the fund to be an opportunistic buyer and capital provider in this area.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.