Starwood's ST Residential Still Prowling for Troubled Condos
Wall Street Journal reports: Early in the fall of 2009, then-recently formed Starwood Capital Group worked in partnership with the FDIC to lead a group of firms in purchasing the 101 loans backing 18 troubled assets formerly owned by failed Chicago-based Corus Bank. The deal was one of the first done by ST Residential, led by Starwood, and also includes TPG Capital, Perry Capital LLC, and LFR LeFrak. ST paid 60 cents on the dollar for Corus’ assets, which was more than 20 percent more than the next-highest bidder, to became one of the largest distressed asset sales of the downturn, according to the Wall Street Journal.
More than one year later, with some serious progress made in the apartment and condominium sector towards firmer pricing and stabilization, ST is eager for more bargain-basement deals on residential space. However, as one would expect when playing with troubled assets, the occupancy of which depends on the broader economic recovery, ST faces potential adversity as well. So far, “They definitely rode a general recovery, which made their lives a lot easier,” remarked Dan Fasulo, managing director at Real Capital Analytics.
ST CEO Wade Hundley told the Journal, “…the firm was exceeding expectations, particularly in southern Florida.” He also added that, “We’re certainly not afraid to own…we think we have a good understanding of what it takes to get these properties repositioned into the market.” That is a good thing, because ST Residential currently owns around 6,700 residential units in the US, according to the Journal.
View the full article on Wall Street Journal: Starwood's ST Residential Still Prowling for Troubled Condos
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Posted by: Nina Turner