Realty Finance Corp. has closed a merger transaction with ClearVue Management, a company that specializes in the acquisition, stabilization and disposition of distressed, nonperforming loans and REO properties.
The total value of the merger was approximately $26 million, with the two businesses now operating as CV Holdings Inc.
Before the merger, Realty Finance primarily focused on managing a diversified portfolio of commercial real estate-related loans and securities. Now, CV Holdings will emphasize continuing ClearVue’s objective of purchasing and managing pools of residential distressed and nonperforming loans.
With this acquisition, Realty Finance management believes they have an opportunity to become a “leading operator” in the nonperforming loan business.
“ClearVue has a successful track record, a strong management team with over 90 years combined experience, and has raised approximately $90 million of equity to date to purchase over 1,650 loans with an aggregate unpaid principal balance of approximately $300 million,” said the commercial real estate specialty finance company, which will move its headquarters from Needham, Mass., to Newport Beach, Calif.
Matt Regan, Dennis Regan, David Haddad and Jonny Harmer, who made up ClearVue’s senior management team, will become the executive vice presidents of CV Holdings.
Ricardo Koenigsberger and Kenneth Witkin, who were directors of Realty Finance, are the co-CEOs of the new company.
