Distressed Capital Management, LLC poises for expansive growth in 2015
IRVINE, Calif. (March 5, 2015) — On February 25, 2015, Distressed Capital Management, LLC (“DCM”) purchased approximately $207,570,935 (USD) whole loans from the Royal Bank of Scotland (“RBS”), RBSHD 2013-1A, B1, B2, B3 and Trust Certificates.
DCM is an emerging asset manager focused on real estate development, securitization and performing and nonperforming commercial and residential real estate loans (“NPLs”). DCM, a subsidiary of Pluto Sama, LLC, utilizes its affiliate companies, BP Law Group, LLP, for loss mitigation of portfolios and Wilson Harvey Browndorf, LLP, for legal work regarding securitization and structured product solutions with major Wall Street banks and Placement Agents.
This achievement represents the culmination of work by the DCM group spanning over a year and a half. Matthew Browndorf, Chairman of Pluto Sama, LLC, communicated, “Proof of concept.”
Managing Director of DCM, Rod Colombi communicated “DCM and its investor partners are positively thrilled to have successfully completed the acquisition of this pool of residential assets. This acquisition represents high investor value on multiple dimensions. It has scale and diversification with over $200MM in UPB and assets distributed across 43 states. At 5.3% the blended cost of funds relative to leverage is very low cost which contributes greatly to a range of equity returns that are high from the low to the high end.”
The whole loan pool DCM acquired consists of two sub-pools: seasoned, fixed-rate and adjustable-rate fully amortizing and balloon, re-performing mortgage loans, re-performing and non-performing mortgage loans secured by first liens on one-family to four-family residential properties, the “Mortgage Loans”; and Real Estate Owned (“REO”) Properties.
DCM will utilize the newly acquired pool by unlocking the value of the Mortgage Loans and REO Properties using its resources, portfolio and network.
“From a cash flow perspective the pool enjoys a ratio of REO to total assets in excess of 20%. The average loan size is over $200K keeping disposition costs down. The assets have been managed at a high level to date and our managers at DCM see real opportunities to improve performance and enhance cash flow and return. The RBS group put a solid deal together, and while saddened to see the group unwound, it made a great asset available for sale. We see continued value and opportunity in the distressed space and plan to acquire more quality assets,” states Mr. Colombi.