The Federal Deposit Insurance Corp. announced three shared-equity deals Tuesday for a total of $620 million in failed-bank assets.
In each deal, a limited-liability company was established to hold the failed-bank loans; the FDIC owns 60% of each venture, and the rest went to a winning bidder. Each company got leveraged financing from the FDIC. It has closed many of these types of transactions during the crisis to reduce the size of its receiverships.
Colony Capital, a Los Angeles real estate investment firm, in partnership with the Cogsville Group of New York, bought equity interests in two of the deals. In one, the partners share ownership with the FDIC of a $137 million portfolio of 198 commercial real estate loans from five failed banks. The other includes $204 million in CRE loans from 12 failed banks. Most of the collateral in the two portfolios is in either Utah or Michigan.
The winning bidder in the third deal was the $276 million-asset Cache Valley Bank in Logan, Utah. It and the FDIC share ownership of $279 million in acquisition and development loans from nine failed institutions. The collateral is in mostly in Utah, Arizona, California or Nevada.