As part of a joint purchase, Hudson Realty Capital has acquired a portfolio of 97 acquisition, development and construction loans from the Federal Deposit Insurance Corp. through its Small Investor Program structured sale.
The New York-based real estate fund manager is teaming up with Soundview Real Estate Partners and JCR Capital Investment to handle management, servicing and disposition of the RADC assets. The assets include vacant land, lots, residential development inventory and multifamily and mixed-use properties.
HRC paid a total of approximately $14.9 million in cash for its initial 25% equity stake to hold the portfolio assets. Overall, the assets are valued at $139 million and 95% of the ADC loans are located in Colorado.
The fund manager, which invests directly in real estate and the acquisition of underperforming assets, has closed more than $3.5 billion in transactions since 2003. This portfolio represents Hudson’s second FDIC-structured sale acquisition and the firm currently has over $2.5 billion in assets under management.
“The addition of the Colorado loan portfolio, along with the Southeastern pool, demonstrates the rapid expansion of Hudson’s portfolio investment platform, where we expect to see even more opportunities in the near future,” said Renee Lewis, managing director of portfolio investments at Hudson.
Lewis said the firm expects to achieve the highest asset value over the hold period through workouts, restructurings, discounted payoffs, foreclosures, repositioning and sales. Working as the asset manager for the portfolio, Hudson will look to resolve the residential and commercial property ADC loans over the next several years.