All of a sudden, Starwood may be a major player in Los Angles real estate. And not just because of the forthcoming W Hotel and Residences opening in Hollywood later this year. The Wall Street Journal is reporting that Starwood Capital Group is "emerging as the likely winner in an auction" led by the FDIC, after it took over the failed Corus Bank's condo loans and properties. Corus is the failed Chicago-based bank that helped back Concerto, Solair, Evo, and other recently completed LA projects that was taken over by the FDIC last month. According to the paper, the assets have a face value of $5 billion but the final bid is expected to be much lower because "many of condominium projects that Corus lent to are facing varying degrees of distress." While the deal could still fall apart, the FDIC is hoping it will close by next week. The paper also notes that in order to minimize taxpayer loss, the FDIC will take a 60% equity stake in any partnership that winds up owning Corus and will also help provide financing.
· Starwood-Led Group Likely Winner of Corus Assets [WSJ]