LEAWOOD, KAN. — Leawood-based Mariner Real Estate Management has closed a deal with the Federal Deposit Insurance Corp. (FDIC) in which Mariner will acquire a stake in a limited liability company created by the FDIC that holds an approximately $760 million real estate loan portfolio. The portfolio contains approximately 1,100 loans from 20 failed banks. The portfolio contains acquisition and development loans for both commercial and residential properties.
Under the terms of the agreement, Mariner will acquire a 40 percent managing member interest in the portfolio for approximately $52 million. It will fund the purchase through two of its funds, Mariner Real Estate Partners LLC and Mariner Real Estate Partners II LLC. The FDIC will control the other 60 percent. The government agency will provide the newly formed ownership entity 1:1 leverage through the issuance of approximately $105 million in non-recourse, zero percent interest financing and a $25 million advance facility for working capital needs.
Chicago based Cohen Financial will provide the loan administration and asset management services for the deal. In a statement Cohen Executive Vice President Tim Mazzetti said, “We are very excited to be working with the joint venture on this transaction. We have been building out our platform over the past 4 years to be in a position to take on such a large and diversified pool of performing, sub- and non-performing assets in an efficient and cost-effective manner.”
Following its takeover of several failed banks as a result of the 2008 credit meltdown, the FDIC adopted a policy to work out and ultimately dispose of the mostly non-performing loans. The FDIC creates limited liability companies to hold the loan portfolios and sells a 40 percent interest in the companies to private capital providers, which are then responsible for the management, servicing and eventual disposition of the loans. By maintaining a stake in the companies, the FDIC lends its leverage to the portfolios and provides a way for the government agency to replenish its emergency funds once the loans are sold.
In January, REBO reported that the FDIC sold an interest in a $1.02 billion loan portfolio to Los Angeles-based Colony Capital Acquisitions. Colony paid approximately $90.5 million for the 40 percent stake. In February, Miami-based Lennar Corp. acquired an interest in two FDIC portfolios totaling $3.05 billion for $243 million.
— Coleman Wood