$1B in Apartments from Failed Chicago Bank on Market

$1B in Apartments from Failed Chicago Bank on Market

CHICAGO—ST Residential has put 13 multifamily properties up for sale across the country, about $1 billion worth of buildings that were acquired from the collapse of locally based Corus Bank in 2009.

The properties are located in Atlanta, Chicago, Houston, Las Vegas, Phoenix, Tampa, Fla. and Stamford, Conn., and include buildings such as the 326-unit, 35-story Lex apartment tower here in the South Loop of downtown Chicago. Eastdil Secured and HFF have been hired to manage the sale.

Locally based ST Residential is selling the properties on behalf of the ownership group that took a 40 percent share of the Corus assets, a venture that includes Starwood Capital Group and TPG Capital. The FDIC owns the majority share.

Barry Sternlicht, chairman and CEO of ST, said the properties will be offered individually in sub-portfolios or as a single portfolio sale. He said in a statement that his firm has improved the properties in the Corus portfolio, boosting the occupancy in a strong apartment market to 98 percent at the stabilized assets.

"The Corus Bank transaction has performed extremely well for the FDIC and our private investor group,” he said. “The partnership has repaid $1.3 billion of FDIC purchase money notes and has more than$1 billion of cash in hand. More than 32 loans were paid off at par and we have sold 60 percent of the condo inventory we acquired at ever escalating prices. We are very proud of where we have taken this portfolio and look forward to finishing our task with continued excellent performance, including the sale of this portfolio."

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