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."
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