Starwood Capital Group, a private investment firm based in Greenwich, Conn., has acquired a non-performing commercial loan portfolio with an outstanding principal balance of $157 million from a major Midwest regional bank.
The portfolio of loans was purchased for 40 cents on the dollar, representing a price of approximately 32% of initial capitalization, according to the company. The portfolio consists of 137 commercial loans with concentrations in Florida, Indiana, Michigan, North Carolina and Ohio.
Through its Starwood Global Opportunity Fund VIII, Starwood has purchased three loan portfolios over the past year with an aggregate outstanding principal balance of $537 million.
"This acquisition is another example of Starwood Capital Group's ability to create value in today's competitive real estate market while building on the momentum we have achieved with Starwood Global Opportunity Fund VIII," says Chris Graham, managing director at Starwood Capital Group.
"Our real estate expertise and experience resolving and managing underperforming loans allows us to maximize returns for Starwood investors."
Starwood Capital Group, which manages approximately $16 billion of assets, has invested in property types from office, retail, and seniors housing to golf, hotels, and industrial assets.