RER Equities, a private investment firm specializing in buying distressed real estate debt and underperforming properties, closed on the purchase of a $33 million portfolio of commercial real estate loans from EuroBank.
The acquisition consists of 51 performing, subperforming and nonperforming notes secured by various commercial real estate and various assets located in Dade, Broward and Palm Beach Counties in Florida.
The negotiated all-cash transaction was completed in 30 days, from confidentiality agreement execution to closing.
This transaction represents the second Florida loan acquisition completed this quarter by the Herndon, Va.-based firm.
“With the South Florida real estate market starting to turn, we felt this was the appropriate time to pursue assets from banks that are prepared to resolve their distressed portfolios,” said Christopher Kallivokas, chairman of RER Equities.
According to Kallivokas, RER is actively pursuing other bank portfolios in the Sunshine State. He believes the firm’s experience in providing due diligence and valuation services on over $70 billion of loan portfolios for government insuring agencies, major wall street firms and financial institutions will help them obtain more distressed portfolios.
“We have found that a buyer that exercises extreme confidentiality, creates minimal disruption and reaches a reasonable price quickly is very attractive to portfolio sellers,” Kallivokas added. “Ten days into the process, we arrived at a strike price that met the bank’s expectations and was in line with our investment parameters.”
