Commercial Real Estate Direct Staff Report
Rialto Capital Management, which seven years ago bought stakes in two massive portfolios of troubled commercial and residential loans from the FDIC, has started winding the portfolios down.
The Miami investment manager, a unit of Lennar Corp., has received notice from its partner, the FDIC, which holds a 60 percent stake in the two portfolios, that it had triggered a so-called clean-up call. That requires Rialto to liquidate what remains in the two, which have a remaining value of some $173 million, within five months. What's left is largely foreclosed properties, which amount to some $116.7 million, and loans with a balance of $32 million.
The two portfolios originally had a principal...
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