Hudson Realty and Partners Nab $139M FDIC Colorado Loan Portfolio

Hudson, Soundview and JCR acquired 97 loans on commercial and residential assets from a FDIC structured sale, collateralized by $139 million of properties across Colorado.

August 8, 2011
By Barbra Murray, Contributing Editor

Loo and Lewis of Hudson Capital

Hudson Realty Capital L.L.C., in a partnership with Soundview Real Estate Partners and JCR Capital Investment Corp., has purchased 97 acquisition, development and construction loans on commercial and residential real estate assets from the Federal Deposit Insurance Corp. through a FDIC Small Investor Program RADC structured-sale. The loans in the $139 million portfolios are collateralized by properties located across Colorado.

Hudson, Soundview and JCR snapped up the collection of loans at 43 percent of their total value. FirsTier Bank owned the RADC assets until its failure in January of this year, and Hudson and partners subsequently paid just $14.9 million in cash for an initial equity stake of 25 percent in the FDIC-formed limited-liability company that held the performing and non-performing loans. The group of assets involved runs the gamut of property types: vacant land, residential development projects, multi-family communities and mixed-use properties. Hudson is serving as the asset manager for the partnership and is planning to eke out the highest possible value from the loans through workouts, restructurings, discounted payoffs and repositionings, as well as foreclosures and sales.

The Hudson-led team’s bid was one of two winning offerings for assets under the FDIC’s SIP program, a pilot endeavor geared toward small, emerging investment firms. A partnership involving Calista Corp., FACP Mortgage Investments L.L.C. and entities controlled by Oaktree Capital Group Holdings picked up a pool of 116 CRE/CADC assets — commercial real estate loans, and commercial acquisition, development and construction loans and credit facilities — valued at $158 million.

The Hudson deal marks the second joint FDIC structured sale-purchase that the real estate fund manager and Soundview have made together. In December 2010, the team acquired 109 commercial real estate loans secured by properties in the southeast.

“Hudson commends the FDIC on their Small Investor Program and their efforts to offer smaller loan pools to increase the diversity of bidders,” said David Loo, Hudson’s managing director and co-founder.

According to Renee Lewis, managing director of Hudson’s portfolio investments, the firm expects to achieve the highest asset value over the hold period. “The addition of the Colorado loan portfolio, along with the Southeastern pool, demonstrates the rapid expansion of Hudson’s portfolio investment platform, where we expect to see even more opportunities in the near future,” she said.