The Federal Deposit Insurance Corp. (FDIC) has completed two sales under its pilot Small Investor Program (SIP). The agency sold its equity interests in two limited liability companies (LLCs) that the FDIC formed to hold assets formerly belonging to FirsTierBank. The FDIC shuttered the Louisville, Colo.-based institution in January.
The pilot program offers smaller-sized asset pools and unique structural features to small investors. The SIP increases participation in structured sales while maintaining a level playing field for all investors, the FDIC says.
The assets transferred to the LLCs consist of 213 loans pooled by loan type. A pool of performing and nonperforming commercial real estate loans and commercial acquisition and development and construction loans and credit facilities (the CRE/CADC assets) were transferred to one LLC, and a pool of performing and nonperforming residential acquisition, development and construction loans and credit facilities (the RADC assets) were transferred to the other LLC.
The purchaser of equity interest in the LLC holding the CRE/CADC assets was Los Angeles-based Acorn Loan Portfolio Private Owner IV LLC, which is owned by Calista Corp., FACP Mortgage Investments LLC and entities controlled by Oaktree Capital Group Holdings.
The purchaser of the equity interest in the LLC holding the RADC assets was HRC SVC Pool II Acquisition LLC (HRC), a New York-based entity controlled by Hudson Realty Capital LLC.
Acorn paid a total of approximately $25.6 million for its initial 25% equity stake in the LLC holding the CRE/CADC assets. The CRE/CADC assets comprise 116 loans with an aggregate unpaid principal balance (UPB) of approximately $158 million. Acorn will provide for the management, servicing and disposition of the LLC's assets.
HRC paid a total of approximately $14.9 million its initial 25% equity stake in its LLC. The RADC assets include 97 loans with an aggregate UPB of approximately $139 million with the highest concentration in Colorado (95 percent). HRC will provide for the management, servicing and ultimate disposition of the LLC's assets.
