Editor’s Note: As more banks and financial institutions fail, we should see more of this type of activity to get value from these assets. This looks to be how the commercial REO market will play out with banks selling and government agencies facilitating these transactions. What I am looking for is if the government is going to provide funding for these deals through low interest loans?
Sorenson Group Holdings LLC today announced it has acquired a structured portfolio of Federal Deposit Insurance Corporation (FDIC) commercial real estate loans worth $701 million from Diversified Business Strategies of Sandy, Utah. The deal closed Fri., Feb. 20 and includes assets in Arizona, Nevada, New Mexico, Texas and California.
“Our goal is to work out the best disposition of these assets for the FDIC, for investors and for borrowers,” said James Lee Sorenson, Sorenson Group Holdings founder and lead investor. Sorenson is also CEO of The Sorenson Group, a developer of prime real estate along Utah’s Wasatch Front, including the 7,000-unit master-planned Rosecrest community. Sorenson Group Holdings will own the loan portfolio and The Sorenson Group will manage it.
The FDIC has been selling structured portfolios of residential and commercial loans from failed banks, giving portfolio investors the opportunity to make investment returns by working out resolution of the loans in ways beneficial to the borrower and lender. Portfolio investors share a percentage of sale proceeds with the FDIC.
The Sorenson Group Holdings portfolio is made up of loans from two banks closed in 2008 by the FDIC: First National Bank of Nevada, Reno, Nevada; and First Heritage Bank, N.A., of Newport Beach, California (owned by First National Bank Holding Co., Scottsdale, Arizona).
The two other Sorenson Group Holdings partners are Tim Fenton and Joe Sorenson, also directors of The Sorenson Group. Both Fenton and Joe Sorenson have extensive large-scale commercial development experience.
Source: Business Wire
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