$50M fund will buy back bad real estate bank notes

Iron Stone Real Estate Cos. established a $50 million fund and a new division to buy bad bank notes backed by commercial real estate properties. It’s a way for the company’s newly formed debt acquisition division to buy real estate in the region at a huge discount, build up Iron Stone’s portfolio and allow it to reposition the properties for eventual sale within three to five years. For a bank, it’s a way to unload bad bets in a cash transaction and get rid assets it has no interest in owning. Activity in these types of commercial real estate transaction…

Philadelphia Business Journal
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