A joint venture between Hudson Realty Capital and an investment fund managed by Apollo Global Management has acquired a USD200m portfolio of non-performing, commercial real estate loans and REO properties from Blairsville, Georgia-based United Community Banks.
The portfolio purchase is the third under the Hudson Realty/Apollo partnership.
This transaction includes nearly 300 positions with collateral spanning several states, including Georgia, Tennessee, North Carolina, Florida and Wyoming. The portfolio is comprised of multiple property types, ranging from office, multi-family and retail, to land and special-use properties. The acquisition was supplemented with additional debt purchased from a CMBS trust on an Atlanta-area industrial complex.
As manager of the portfolio, Hudson Realty will work to resolve the property loans during the next several years and will manage the assets from the company’s regional office in Fort Myers, Florida.
“We are excited to be partnering with Apollo on this transaction, and expect to achieve the highest potential asset value over the hold period through workouts, restructurings, foreclosures, repositioning and sales,” says Renee Lewis (pictured), managing director, portfolio investments at Hudson Realty. “Our established presence in the Southeast, combined with a deep knowledge of the real estate market, allows us to identify and quickly respond to investment opportunities. This acquisition reaffirms Hudson Realty’s ability to compete on large transactions at yields at or above market value.”
“We are pleased to expand our partnership with Hudson Realty,” says Coburn Packard, a partner at Apollo. “This acquisition is closely aligned with one of Apollo’s real estate strategies to pursue opportunistic investments involving operationally complex assets in stable and improving markets nationwide.”
Hudson Realty is one of the nation’s most active acquirers of loan portfolios and is able to service and manage the loans in-house. The firm has purchased approximately USD770m of small-balance loan and REO portfolios nationwide in this market cycle. Hudson Realty’s recent acquisitions involve portfolios in the Mid-Atlantic and Western US regions, including California and Colorado. In addition to its loan-portfolio investments, Hudson Realty is an active core bridge lender nationally. The firm provides financing for acquisitions, refinancings and repositionings, borrower discounted payoffs, third-party debt acquisitions and debtors in possession.