A consortium of investors organized by Colony Capital LLC, including Colony Financial Inc., a real estate finance company focused on acquiring, originating and managing commercial mortgage loans, has participated in the acquisition of a structured transaction with the Federal Deposit Insurance Corp. (FDIC). The transaction comprises two portfolios of residential and commercial acquisition, development and construction loans.
The combined portfolios include 1,505 loans with an aggregate unpaid principal balance of $817 million. The purchase price for the combined portfolios was 23.6% of the unpaid principal balance of the loans.
Cushman & Wakefield served as adviser to the FDIC on the sale of the 50% managing member equity interest in a newly formed limited liability company created to hold the acquired loans, with the FDIC retaining the remaining 50% equity interest. The FDIC provided 1:1 leverage financing bearing a 0% interest rate. Colony Financial's equity participation totaled $5 million.
SOURCE: Colony Capital LLC
