Bilzin Sumberg Represents Lennar in the
Acquisition from the FDIC of a 40 Percent Equity
Interest in Excess of $3 Billion of Real Estate
March 18, 2010 11:16 AM Eastern Daylight Time
MIAMI--(EON: Enhanced Online News)--Bilzin Sumberg, which represents Lennar Corporation (NYSE: LEN
and LEN.B), one of the nation's largest homebuilders, and Rialto Capital, a real estate investment management
company focused on distressed real estate asset investments, announced the closing of two multibank structured
asset transactions with the Federal Deposit Insurance Corporation ( FDIC"). In the joint venture with the FDIC,
Bilzin Sumberg's client, which was the winning bidder, acquired a 40 percent equity interest in two limited liability
companies formed by the FDIC to own and manage the separate distressed real estate loan portfolios having a total
outstanding balance in excess of $3 billion. The FDIC retains a 60 percent equity interest in the limited liability
The loans are comprised of approximately 5,500 distressed commercial and residential real estate loans from 23
failed banks. The loans are backed by a variety of real estate, including partially developed land, residential units,
raw land, finished home sites, retail space and office and industrial space.
Lennar contributed $243 million towards the total $1.22 billion purchase price of the portfolios, while the remaining
balance was financed by the FDIC - $365 million in equity and $627 million in non-recourse financing at zero
percent interest for seven years. The transactions were closed on February 9, 2010.
Complicating the transactions was the short time frame for closing – approximately three weeks from the cessation of
bidding to closing. Bilzin Sumberg's team of attorneys, led by Corporate & Securities Group co-chair Alan D.
Axelrod, handled the preparation and finalization of all closing documents and agreements, as well as the interaction
with the FDIC's in-house and outside counsels.
About Bilzin Sumberg