Kearny Street Portfolio

In June 1993, Kearny Street Real Estate Company acquired a $1.36 billion portfolio of non-performing loans and real estate from Bank of America. The acquisition included innovative public bond financing of $472 million (87% LTV). The portfolio consisted of 122 assets located predominately throughout the Western United States. At close the portfolio make up included:

Loans Paying a Agreed 44.0%
Loans Not Paying as Agreed 51.1%
REO 4.5%

Kearny designed and implemented individual strategies for each asset and liquidated the assets over a six-year period. During the life of the portfolio, Kearny owned fee title to over 50 individual properties, totaling 5.6 million square feet. Kearny was particularly successful in evaluating the underlying real estate in the portfolio, foreclosing on assets and rehabilitating and repositioning the real estate. Kearny also developed sophisticated reporting and management systems to ensure that cash was immediately captured and properties received the highest quality oversight. The Kearny Street investment returned nine times the equity invested to its owners.