by EVAN NEMEROFF
– April 6, 2011 –
The Cogsville Group, a private equity firm that focuses on commercial real estate, has joined with Colony Capital and a consortium of investors to acquire two portfolios from the Federal Deposit Insurance Corp.
The transaction includes more than 1,500 acquisition, development and construction loans that have an aggregate unpaid principal balance of $817 million. The portfolios consist of residential and commercial ADC loans purchased for 23.6% of the unpaid principal balance.
Since July 2010, the investment fund of the New York-based company has invested in $3 billion in distressed real estate and ADC loans from five FDIC portfolios. The fund’s investments include more than 3,900 loans in more than 40 states acquired at less than half of their unpaid principal balance.
About two-thirds of the investments are commercial real estate loans secured by retail, office, multifamily, industrial and special-purpose properties. The remainder of the fund’s investments are raw and partially developed land.
In addition to partnering with Colony Capital for all five transactions, the fund also co-invested with BlackRock, Mount Kellett Capital and WL Ross & Co.
“We are pleased to acquire these additional FDIC assets at attractive prices, close to what we believe is the turning point in this real estate cycle,” said Donald Cogsville, CEO of The Cogsville Group. “The FDIC’s structured asset sales program serves an important role in resolving distressed loans and restoring real estate markets while providing compelling investment returns.”