Search
 

Corus Bank Assets Purchased by Starwood-Led Group

CHICAGO-The group will shell out $554 million for a 40% stake in $4.5-billion of troubled real estate loans. FDIC will hold the other 60%.

By Ryan Clark | Updated on October 07, 2009

CHICAGO-A Starwood-led group, including of TPG Capital, Perry Capital and WLR LeFrak has won the right at auction to purchase a portion of an LLC holding a $4.5-billion of assets from the defunct Corus Bank. The group will drop $554 million for a 40% stake in the LLC which carries troubled real estate loans mostly associated with condominium projects. The FDIC, meanwhile, will hang onto the other 60% of Corus Construction Ventures, LLC and will provide financing with a 0% coupon for 50% of the purchase price of the LLC. According to a release, “the FDIC will also extend up to a $1 billion facility for working capital purposes and to fund project completions.” Starwood will take over day-to-day management of the portfolio.

The portfolio consists of “100 loan and REO assets linked to high-quality condominiums, multifamily housing, office properties, and land, representing nearly 23 million square feet,” says Starwood’s release. There were eight bidders that competed for this portfolio in an auction for the limited liability company holding the $4.5-billion unpaid principal balance.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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 © 2024 ALM Global, LLC. All Rights Reserved.