Investment vehicles managed by Los Angeles-based investment firm Colony Capital LLC, including Colony Financial Inc., a real estate finance company focused on acquiring, originating and managing commercial mortgage loans, have announced the consummation of a structured transaction with the Federal Deposit Insurance Corp. (FDIC).
The transaction includes approximately 1,200 loans with an aggregate unpaid principal balance of approximately $1.02 billion, consisting of substantially all commercial real estate loans.
Deutsche Bank served as advisor to the FDIC on the sale to Colony of a 40% managing member equity interest in a newly formed limited liability company created to hold the acquired loans, with the FDIC retaining the remaining 60% equity interest.
The portfolio was effectively acquired at approximately 44% of the unpaid principal balance of the loans, with a purchase price by Colony of approximately $90.5 million (net of working capital and transaction costs) for its 40% equity interest, the company says. The financing of the transaction includes $233 million of notes provided by the FDIC.
SOURCE: Colony Capital