WASHINGTON, D.C. Private equity firms Blackstone Group LP and Square Mile Capital LLC have reportedly agreed to buy about US$385 million worth of mortgages, connected to 45 hotels, from a U.S. government agency.
Blackstone and Square Mile, through a joint venture, will pay about 80 cents on the dollar for the portfolio from the Federal Deposit Insurance Corp., according to The Wall Street Journal.
The loans originated with the failed Silverton Bank, which the FDIC took over in 2009. Most of the hotels backing the loans are new-build properties in the limited-service segment, according to the Journal.