There is an article in the South Florida Business Journal this week about a partnership with Northwest Investments, LLC and Starwood Capital and some other groups. They have bought a significant portion of the Corus Portfolio and the FDIC is partnering with them. I think the thought is that by working with a group willing to pay more than what the assets are really worth it can help stabilize the South Florida real estate market because it helps establish a higher appraisel value in sales for the rest of the market. One of the problems in commercial real estate in the last year is that sales have virtually stopped because there were few transactions to establish value and the opportunity or "vulture" funds were hesitant to buy in case prices dropped even lower.
This is in effect a double bailout - it keeps prices relatively stable for all property owners (bailout 1) and it provides significant equity to an opportunity fund (bailout 2). I don't have a problem with that - I lived in Miami in the early 80's when the condo market crashed then and it was not a happy time.
However, apparently some of those units have tainted drywall. This means the FDIC now has a stake in making sure there is some sort of remediation protocol shortly. I wonder if they have realized that yet?
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