Former Corus Bank Portfolio on the Market
By Dees Stribling, Contributing Editor
Chicago—ST Residential has put a portfolio of 13 multifamily properties in eight states on the market. The properties are being offered individually in sub-portfolios or as a single portfolio sale.
The portfolio is owned by a public-private partnership between the Federal Deposit Insurance Corp. and a group of private real estate investors lead by ST Residential, which manages the properties. The sellers originally acquired the loans backing the portfolio, which carries an estimated value of nearly $1 billion, from the failed Corus Bank in 2009.
ST Residential was formed by Starwood Capital Group in the aftermath of the housing crash to make money from troubled residential assets, working in partnership with other investors and the FDIC. The CorusBank portfolio purchase was one of the largest asset sales during the worst of the Great Recession.
Not all of the properties were completed at the time of the original sale. After the completion of construction, and in some cases, nearly complete redesign of landscaping, sales centers and model units, the portfolio’s occupancy (on stabilized assets) has now reached 98 percent.
The properties are located in Atlanta; Chicago; Houston; Las Vegas; Los Angeles; Phoenix; Stamford, Conn.; and Tampa, Fla. According to ST Residential, each of the properties has condo-level finishes. ST Residential has hired HFF and Eastdil Secured to manage the sale.