The Federal Housing Finance Agency
(FHFA) announced today that the Cogsville Group, LLC is the second successful
bidder in the agency’s owned real estate (REO) pilot initiative. The group has purchased 94 properties held by
Fannie Mae in Chicago. According to FHFA
all properties were sold near or above market value.
On September 10 FHFA revealed the first
investor group to purchase through the program was Pacifica Companies, LLC which
bought 699 Fannie Mae properties in Florida.
At that time FHFA said that 541 properties in Atlanta were not awarded
and will be evaluated for disposition through Fannie Mae’s retail sales operation
or through future structured transactions.
Both sales were described as “Modified
Cash Flow (2:1)”. The Pacific
transaction had a third party value of $81.5 million and the company paid $12.3
million for its “bidder interest.” The
Chicago deal had a third party value of $13.7 million and Cogsville paid $2.1 million. The remaining structure was described as “10%
of equity cash flow shifting to 50% after Shift Threshold”. In the case of Pacific that threshold is
$49.31 million and for Cogsville it is $8.39 million.
Pacifica Companies is a privately held
real estate developer, investor, owner, and manager located in San Diego,
California. Its portfolio includes hotels,
mixed use projects, master planned communities, industrial, office, and retail
developments, senior housing, multifamily housing, and single-family
communities in the U.S., Mexico, and India.
The Cogsville Group was founded in 2006
by Donald Cogsville, a former member of the U.S. National Soccer Team and the
professional San Diego Sockers. The firm
acquires distressed commercial real estate assets and in 2010 acquired the
second largest distressed commercial portfolio ($1.8 billion) in the history of
FHFA said that Fannie Mae will continue
to offer for sale pools of properties in markets across the U.S. and interested
investors can continue to qualify as purchasers through the pilot program.