Compass Partners Closes on USACM Assets

LAS VEGAS-Compass Partners, a private equity firm from New York City, has closed on its acquisition of the assets of locally based USA Commercial Mortgage Co.’s First Trust Deed Fund. Compass’ $67-million offer was the high bid at a bankruptcy court auction held in December .

The fund took in $85 million with which it made short-term loans for commercial real estate projects. The portfolio of loans has an aggregate unpaid principal balance of $1 billion. Approximately 60% of the loans are non-performing.

Rather than liquidate the assets, Compass has formed Compass Financial Partners LLC to service the loans. Compass co-founder David Blatt tells GlobeSt.com that all of the loans are backed by real estate assets located all over the country. He expects to stabilize and resolve the outstanding loans in six to 12 months.