Starwood Capital Group Acquires $312 Million Non-Performing Commercial Loan Portfolio

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Jan 12, 2012, 09:57 ET

GREENWICH, Conn., Jan. 12, 2012 /PRNewswire/ -- Starwood Capital Group ("Starwood"), a leading private investment firm, today announced it has completed the acquisition of a commercial loan portfolio with an outstanding principal balance of approximately $312 million from a Southwestern regional bank. The portfolio consists of 106 first mortgage loans and Real Estate Owned (REO) assets. Roughly half the loan portfolio is performing. The collateral represents all property classes, including, office, retail, multifamily, commercial land, hotel, residential and other asset types. Geographically, 70% of the loans are concentrated in Texas, followed by Colorado and Arizona.

"This is the eighth multi-loan portfolio we have purchased from a variety of banks and financial institutions over the past two years, including the successful 2009 acquisition of the $4.5 billion construction loans and REO formally owned by Corus Bank, NA, which remains one of the largest acquisitions of distressed commercial real estate assets in this cycle," said Chris Graham, Managing Director at Starwood Capital Group. "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 own investment criteria. We expect to continue to pursue similar transactions in the near future."

"I am very pleased that our team was able to quickly underwrite the assets and execute a year end closing," said Brendan Brogan, Vice President at Starwood Capital Group. "This deal represents a great opportunity for our partners to purchase a portfolio of high quality loans in strong markets at an attractive price."

About Starwood Capital Group
Starwood Capital Group is a private, U.S.-based investment firm with a core focus on global real estate. Since the group's inception in 1991, the firm, through its various funds, has invested over $10 billion of equity capital, representing over $29 billion in assets. Starwood Capital Group currently has $19 billion of assets under management. Starwood Capital Group maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C., and affiliated offices in London, Luxembourg, Paris, Mumbai and Sao Paulo. Starwood Capital Group has invested in nearly every class of real estate on a global basis, including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets. Starwood Capital Group and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets. Additional information about Starwood Capital can be found at www.starwoodcapital.com.