Toll Brothers and Deutsche Bank Close Private Transaction on Non-Performing Loans

Strategic Insights -

Toll Brothers and Deutsche Bank have completed a private transaction involving the purchase of a portfolio of non-performing loans with outstanding balances totaling approximately $200 million. The assets, located in nine states and Washington D.C., consist primarily of residential acquisition, development, and construction loans secured by properties at various stages of completion. The average loan size is approximately $2.4 million, and Gibraltar Capital, a subsidiary of Toll Brothers, has acquired a majority interest in the venture and will manage the portfolio.

Key Takeaways:

  • The transaction involves the purchase of a portfolio of 83 non-performing loans with outstanding balances totaling approximately $200 million.
  • The assets are located in nine states and Washington D.C. and the average loan size is approximately $2.4 million.
  • The portfolio consists primarily of residential acquisition, development, and construction loans secured by properties at various stages of completion.
  • Gibraltar Capital, a subsidiary of Toll Brothers, has acquired a majority interest in the venture and will manage the portfolio.
  • The partnership between Toll Brothers and Deutsche Bank aims to maximize the value of underperforming real estate assets.
  • The transaction marks Gibraltar's second portfolio transaction involving real estate assets, which now total nearly $2 billion.
  • The companies continue to seek opportunities to leverage Toll Brothers' expertise, relationships, and capital access to undertake complex transactions.

Statistics:

  • $200 million: Total outstanding balances of non-performing loans purchased by Toll Brothers and Deutsche Bank.
  • 83: Number of non-performing loans in the portfolio.
  • 2.4 million: Average loan size in the portfolio.
  • 9: Number of states and Washington D.C. where the assets are located.
  • $2 billion: Total value of real estate assets managed by Gibraltar, including this portfolio.

Sources:

  • "Toll Brothers and Deutsche Bank Close Distressed Loan Portfolio Acquisition", GlobeNewswire, (2011-03-31)
  • Toll Brothers, Inc. (www.tollbrothers.com)
  • Gibraltar Capital and Asset Management LLC (www.gibraltarcapital.net)
  • Deutsche Bank (www.deutsche-bank.com)
  • Comtex SmarTrend Alert (www.mysmartrend.com)