A joint venture between Tom Barrack's Colony Capital LLC and Cogsville Group LLC won the bidding for a portfolio of distressed real-estate loans auctioned off by the Federal Deposit Insurance Corp.
The two companies will purchase a 40% stake in a $1.85 billion portfolio of commercial-property loans held by now-defunct banks such as Community Bank of Nevada and New Frontier Bankreported. The deal, announced today, is the second-largest bulk sale of commercial-property debt under a public-private partnership, according to The Wall Street Journal.
The investment group will pay 59 cents on the dollar, or $445 million, for the stake. The FDIC, which retains the other 60% of the portfolio, is offering the investors zero-interest financing. That means the consortium will have to pay $218 million up front. Cogsville will contribute $16 million.
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