$200M Nonperforming Loan Portfolio Acquired by Joint Venture

A joint venture comprised of Hudson Realty Capital and Apollo Global Management acquired a $200 million portfolio consisting of nonperforming, commercial real estate loans and REO properties.

The portfolio was purchased for an undisclosed price from Blairsville, Ga.-based United Community Banks. It is made up of multiple property types, ranging from office, multifamily and retail, to land and special-use properties.

Additionally, the transaction includes nearly 300 positions with collateral spanning several states, including Georgia, Tennessee, North Carolina, Florida and Wyoming.

“This acquisition is closely assigned with one of Apollo’s real estate strategies to pursue opportunistic investments involving operationally complex assets in stable and improving markets nationwide,” said Coburn Packard, a partner at Apollo Global Management, an investment fund headquartered in New York.

As manager of the portfolio, New York-based Hudson Realty, a real estate fund manager with more than $2 billion in assets currently under management, will work to resolve the property loans during the next several years. Hudson Realty said it plans on managing the assets from the company’s Fort Myers, Fla., regional office.

“We expect to achieve the highest potential asset value over the hold period through workouts, restructurings, foreclosures, repositioning and sales,” said Renee Lewis, managing director of portfolio investments at Hudson Realty.

This transaction marks the third acquisition under the Hudson Realty/Apollo partnership.