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Atlanta Foreclosed Homes from Corus Bank Condo Portfolio
October 8th, 2009 by 
jkingstone
Lists of Atlanta foreclosed homes will soon include condo properties seized from Chicago-based Corus Bank which invested heavily in condo development projects in Atlanta.
According to Peter Zalewski of Condo Vultures, many condo properties in the $4 billion real estate portfolio of Corus Bank will be sold off after investors complete a deal with the Federal Deposit Insurance Corporation which closed the bank in September.
The operations of Corus were taken over by MB Financial, which is also now considering selling off all the troubled real estate loans, many of which cover properties in Atlanta.
The FDIC initially wanted to sell off the properties immediately after the bank closure to cut down maintenance and related costs, but now the agency wants to sell all the troubled Corus property loans and foreclosed properties to one buyer by the end of this month.
Among the reported bidders for the Corus properties are Miami-based The Related Companies, Philadelphia-based Lubert Adler Group and Starwood Capital.
According to analysts, the FDIC is expected to choose one buyer with unquestionable financial strength and one willing to share profits from the immediate resale of the properties.
The analysts also added that real estate vultures have been monitoring the sale and have been making contacts with the reported bidders because they want to get hold of the more attractive properties including many Atlanta foreclosed homes.
As of the end of June, Corus had $463 million in foreclosed properties and $4.42 billion in commercial property loans. Almost $3 billion of its condominium loans were in default as of June.
Because of the closure, the FDIC is expected to lose around $1.7 billion to cover the insured deposits of Corus. Corus Bankshares, the former parent company of Corus, updated the loan portfolio of Corus when it filed its second quarter report in September.
In Atlanta, Corus Bank provided over $10 million in real estate loans to ten major borrowers. To attract bids, the loans are expected to be sold off at substantial discounts by the FDIC and the impact of the sales in Atlanta is still to be seen.
Out of the nearly 2,000 condominium units developed in Atlanta with loans borrowed from Corus, 80 percent were unsold. Atlanta was the third biggest market of Corus, providing loans for the development of over 2,000 condo properties during the housing boom.
