March 2, 2011 – NEW YORK, NY
The Cogsville Group, LLC, has notched up over $3 billion in commercial real estate and ADC loans is a strategic run at the FDIC’s structured asset sales program.
In its latest transaction, the private equity firm partnered with Colony Capital, LLC and a consortium of investors to purchase from the Federal Deposit Insurance Corporation (FDIC) two portfolios with more than 1,500 Acquisition, Development and Construction (ADC) loans that have an aggregate unpaid principal balance of approximately $817 million.
Since July 2010, The Cogsville Group’s investment fund, Cogsville Capital Partners Fund I, L.P., has participated in the purchase of over $3 billion in commercial 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.
Roughly two-thirds of the fund’s 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 in all five transactions, the fund has co-invested with other institutional investors, including BlackRock, Mount Kellett Capital and W.L. Ross & Co. The portfolios acquired on January 27 consist of residential and commercial ADC loans purchased for 23.6% of the unpaid principal balance.
The FDIC provided 1:1 leverage financing bearing a zero interest rate and the structure has been modified from previous FDIC offerings to include a 50-50 equity split with the FDIC. Cushman & Wakefield served as financial advisor to the FDIC on the sale of these assets.
Donald P. Cogsville, CEO of The Cogsville Group, commented, “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. “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,” said Cogsville.
Cogsville, a long term veteran of structured finance and real estate, started his career on Wall Street as an attorney following a successful career as a professional athlete with the San Diego Sockers and a member of the U.S. National Soccer Team.