From reoi.com plus thanks to tj and the bear for sending the photo – let’s find a Blazer for sale!:
Mariner Real Estate Management (MREM), a real estate investment and management firm based in Kansas, closed a deal to acquire a $760 million portfolio of residential and commercial loans and REO properties from the Federal Deposit Insurance Corp. (FDIC).
MREM is part of Mariner Holdings, a $7 billion wealth and asset management company. The portfolio includes roughly 1,100 loans and properties from 20 banks the FDIC has taken into receivership. The properties are located across 24 states.
Earlier in August, the FDIC sold a similar $1.7 billion portfolio to PMO Loan Acquisition Venture, a partnership of other investment firms. If bank failures continue, the amount of REO held by the FDIC would increase. Those banks insured by the FDIC currently hold $49.2 billion worth of REO, a 45% increase from a year ago.
In this most recent deal, MREM acquired a 40% managing member interest for roughly $52 million in a company created by the FDIC to hold all of its loans and REO assets recovered from failed banks. The FDIC will keep the other 60% interest in the company.
MREM tapped Cohen Financial, based in Chicago, to handle the asset management services for the deal. Cohen provides loan servicing and asset management services to third parties.
“We are very pleased to partner with the FDIC on this important transaction,” said Marty Bicknell, CEO of Mariner, in a press statement. “Together with Cohen Financial, we can offer the FDIC the best asset management solutions for this portfolio.”
Tim Mazzetti, a partner and executive vice president at Cohen Financial said his company has been preparing for an opportunity like this for some time. “We have been building out our platform over the past four years to be in a position to take on such a large and diversified pool of performing, sub- and nonperforming assets in an efficient and cost effective manner,” Mazzetti said.
OTOH, Freddie Mac has made clear it will not consider Bulk sales except for properties that will not sell through a broker or auction. Good interview by Bruce Norris of Peter Wayman, Senior REO Sales Director for Freddie Mac over the weekend. (available for free on the Norrisgroup web site)
From the Wyman interview: “Lots of investors contact Freddie Mac asking to buy all the $200,000 properties in California and Arizona. Peter responds to those investors saying, “You mean all those properties that I get multiple offers on within the first two weeks of being listed on the market?” Freddie Mac does not need investors to buy those properties.”
“Mariner Real Estate Management (MREM), a real estate investment and management firm based in Kansas, closed a deal to acquire a $760 million portfolio of residential and commercial loans and REO properties from the Federal Deposit Insurance Corp. (FDIC).
In this most recent deal, MREM acquired a 40% managing member interest for roughly $52 million in a company created by the FDIC to hold all of its loans and REO assets recovered from failed banks. The FDIC will keep the other 60% interest in the company.”
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Am I understanding this right? Are they getting 40% of a $760MM portfolio for $52MM? IOW, are they paying $52MM for $304MM worth of assets? Is this before or after marking these assets down? (Does the FDIC do that?) This can only make sense to the taxpayers if this is a portfolio of largely non-performing HELOCs/seconds, no?
Kingside, Thanks.
That was a great interview with a great ending. Norris asked 3 questions to get clarification on bulk sales and when Wayman laid it out at the end Norris interjected “That’s exactly the ones we’re interested in” (the one’s that get multiple offers in the first 2 weeks ). Then the interview was “out of time”. I’m sure it was out of time but it’s entertaining to think that the cold water answer brought an end to the interview.
Makes sense though. Freddie isn’t going to sell a few mini-packs or singles “direct”
Fannie is more open to good bulk sales if I remember right…as long as you pony up $100K non-deposit money to sign up and look at their stuff, then bid like everyone else.
(I tend to get the 2 confused, so if I’m wrong flip-flop ’em)