A public-private partnership between the Federal Deposit Insurance Corp. and a group of real estate investors and asset managers has taken ownership of an REO condo development in Hawaii.
The Allure Waikiki development is a 35-story condo tower in Honolulu that was previously held by the now defunct Corus Bank. The new owner, ST Residential, said it will review the development's condition and make necessary updates in the process of selling the individual units.
When Corus failed in September 2009, the FDIC was appointed receiver, taking control of a $4.5 billion portfolio of residential real estate assets and construction loans.
A consortium of private sector firms, comprised of asset management firm Starwood Capital Group, private equity group TPG and real estate investment companies WLR LeFrak and Perry Capital, formed the ST Residential group and successfully bid to become the FDIC's private sector partner.
ST Residential's goal is to manage the developments in the portfolio and sell residential units to homeowners.
The group of private firms paid $554 million to acquire 40% of the equity in the ST Residential venture. The FDIC controls the remaining 60% of the entity and provided financing to the investors.
