With delinquencies continuing to be a problem throughout the country, investment firms continue to take advantage of these current opportunities in buying nonperforming assets from financial institutions.
One firm that recently participated in such a transaction is Greenwich, Conn.-based Starwood Capital Group, which purchased a $312 million nonperforming commercial loan portfolio from a Southwestern regional bank.
Starwood said the portfolio consists of 106 first mortgage loans and REO assets, with approximately half of the properties as performing loans. The collateral represents all property classes, including office, retail, multifamily, commercial land, hotel and residential. Approximately 70% of the loans are concentrated in Texas, followed by Colorado and Arizona, Starwood said.
Chris Graham, managing director at Starwood Capital Group, said this is the eighth multi-loan portfolio that Starwood has purchased from a bank over the past two years and that the firm expects to pursue similar transactions in the future.
“These loan portfolios are an important part of our ongoing strategy where we work directly with bank managements to structure transactions that fulfill their needs and also meet our investment criteria,” Graham added. “This deal represents a great opportunity to purchase a portfolio of high quality loans in strong markets at an attractive price."
