In an 100% cash transaction, Brazil's EuroBank sold commercial real estate notes backed up with real estate in the Florida counties of Broward, Dade, and Palm Beach to an American investment firm based out of Virginia. The amount of cash: $33,413, 513. There are lots of news reports regarding the buying and selling of residential real estate mortgages these days, but this news release regarding a big chuck of cash being used to buy up Florida commercial real estate notes isn't as common and accordingly, is our news release of the week:
RER Equities, Inc. Closes on the Purchase of $33 Million Portfolio of CRE Loans from EuroBank
HERNDON, Virginia, July 20, 2012.
RER Equities, Inc., a private investment firm specializing in buying distressed real estate debt and underperforming properties, recently announced their latest acquisition of fifty one performing, subperforming and nonperforming notes secured by various commercial real estate and related assets. The aggregate unpaid balance of the notes totals $33,413,513. The seller was Coral Gables, Florida based EuroBank, a subsidiary of Banco do Brasil S.A. The notes are secured by real estate assets in Dade, Broward and Palm Beach counties.
The negotiated all cash transaction was completed in thirty days, from confidentiality agreement execution to closing. This transaction is the firm’s second Florida loan acquisition this quarter.
Christopher Kallivokas, Chairman of RER Equities, said, “With the South Florida real estate market starting to turn, we felt this was the appropriate time to pursue assets from banks that are prepared to resolve their distressed portfolios.” RER is actively pursuing other bank portfolios in Florida. Kallivokas commented, “Our experience in providing due diligence and valuation services on over $70 billion of loan portfolios for government insuring agencies, major Wall Street firms and financial institution acquirer’s has allowed us to develop a very unobtrusive procedure for quickly valuing a bank’s classified portfolio. We have found that a buyer that exercises extreme confidentiality, creates minimal disruption and reaches a reasonable price quickly is very attractive to portfolio sellers. Ten days into the process, we arrived at a strike price that met the bank’s expectations and was in line with our investment parameters. ”
Headquartered in Herndon, Virginia, a DC suburb, with offices in Coral Gables, Florida, RER Equities, Inc., has been acquiring distressed real estate related loans throughout the eastern United States since its inception in 1989. It is a member of the RER Financial Group LLC, a nationwide financial services firm specializing in the acquisition, valuation, management and servicing of commercial real estate ("CRE") loans and mortgages. For more information, visit RER Financial Group’s website: www.rerfin.com.
RER Equities, Inc.