MIAMI — Miami-based Lennar Corp. has acquired approximately $740 million worth of distressed real estate assets in three separate transactions. The sellers were three large financial institutions, making this one of the largest distressed purchases made from the private sector in recent memory.
The combined portfolio comprises 397 loans and 306 properties. The loans carry a total unpaid principal balance of approximately $529 million, and the REO properties carry an appraised value of approximately $211 million. Approximately 65 percent of the assets are residential and 35 percent are commercial. The assets are spread across 17 states primarily in the Mid-Atlantic and Southeast regions.
Rialto Investments, a division of Lennar, will be responsible for the day-to-day management and ultimate workout of the portfolio. Eric Feder, head of strategic development for Lennar and Rialto, sourced the transaction. In a statement, Stuart Miller, president and CEO of Lennar, said, “We have now completed transactions with both the FDIC as well as leading financial institutions. We expect the investment opportunities in both of these sectors to continue to grow as the FDIC and the banks work through their distressed assets.”
In February, Lennar acquired a stake in two distressed portfolios held by the FDIC. The portfolios contained approximately 5,500 commercial and residential loans with an unpaid balance of $3.05 billion. Lennar acquired a 40 percent interest in the portfolios for $243 million.
— Coleman Wood