More than $0.7 billion in distressed residential and commercial assets were acquired by one company.
Around 397 acquisition, development and construction loans for $529 million were included in the transactions. The commercial and residential properties are at varying stages of completion.
In addition, 306 properties for $211 million in real estate owned were purchased.
Lennar Corp., the buyer, said in an announcement Friday that it acquired the assets at a discount from “three large financial institutions.”
Just under two-thirds of the assets were residential, while more than a third were commercial.
Lennar-subsidiary Rialto Investments will manage the loans and handle workouts.
“Rialto is uniquely positioned to underwrite and purchase pools of distressed assets and generate earnings from the resolution of those assets, one asset at a time,” Lennar Corp. President and Chief Executive Officer Stuart Miller said in the statement. “These ground breaking transactions, sourced by Eric Feder, head of strategic development for Lennar and Rialto, represent the first major purchases from the private sector.”
Having completed transactions with the Federal Deposit Insurance Corp. and the financial institutions, Lennar has an appetite for more of the same, according to Miller.
