WASHINGTON, DC - The Federal Deposit Insurance Corp. has chosen CB Richard Ellis, with teams based in Dallas and Washington, D.C., as primary advisor for its real estate portfolio. CBRE said on Wednesday that it will lead a multi-company team to manage, lease and sell the FDIC's residential and commercial properties in all 50 states, Puerto Rico and the U.S. Virgin Islands that are held by the FDIC as the receiver for failed financial institutions.
No details were available about the value or size of the FDIC portfolio, but it includes retail, apartment, office, industrial and hotel properties as well as single-family houses in all 50 states, Puerto Rico and the U.S. Virgin Islands. FDIC spokesman David Barr said the portfolio is growing. So far this year, 22 banks and thrifts have failed. "Just one bank failure can greatly expand the size of the inventory," Mr. Barr said. For example, Houston's Franklin Bank failure earlier this month had 250 foreclosed properties, from raw land to single-family houses, he said.
The FDIC wants to sell as many of those assets as it can. "The reason we need to sell them is because the proceeds go back to the creditors of failed banks and the FDIC's responsibility as a receiver is to maximize the returns on the assets of an institution for the creditors of the institution," Mr. Barr said.
Ken Pearson, a first vice president of CBRE in Dallas, will lead a national team of asset managers, property managers and marketing professionals to support the day-to-day activities of the FDIC contract from Dallas. A team out of CBRE's Washington, D.C., office will oversee ongoing client services.
"We had to put together a team capable of handling any kind of asset — be it a shopping center or a residential asset, anywhere in the country," Mr. Pearson said. "We felt that CBRE was well situated to be able to do that on a scale that the FDIC might require."
The size of CBRE's team will grow as the FDIC's portfolio grows, Mr. Pearson said. CBRE employs 29,000 worldwide. Los Angeles-based CBRE will work with Realogy, RR Donnelley Global Real Estate Services and other partners on the FDIC account.