iStar to Acquire Fremont's CRE Biz

New York-based iStar Financial, a commercial real estate lending company, is acquiring the commercial real estate business of Fremont General Corp., Santa Monica, Calif., for a total cash purchase price of about $1.9 billion.The New York-based company is acquiring Fremont's commercial real estate lending business and retaining a 30% interest in Fremont's $6.5 billion portfolio of commercial real estate loans, iStar reported. Under the agreement, iStar will have a 'B' participation interest in the Fremont portfolio, which will be subordinate to Fremont's 70% 'A' participation, and will fund up to about $4.4 billion in unfunded loan commitments associated with the portfolio. Most of Fremont's employees in eight offices nationwide will be retained, iStar said. "With greater regional reach and an enhanced platform, this acquisition will allow iStar to expand its U.S. footprint and leverage our strong brand across a larger universe of commercial real estate borrowers," said Jay Sugarman, iStar's chairman and chief executive officer. Multifamily properties represent about 60% of the Fremont portfolio, iStar said, with condominium construction and conversion projects accounting for about 45% of the total portfolio. The companies can be found online at http://www.istarfinancial.com and http://www.fremontgeneral.com.