Home builder Toll Brothers, with new subdivisions under way in Connecticut, teamed with a German bank to purchase delinquent or foreclosed real estate loans with balances topping $200 million to expand its building portfolio. None of the assets are in Connecticut.
Toll’s Gibraltar Capital and Asset Management division and Deutsche Bank created a joint venture that bought a portfolio of 83 nonperforming loans and assets from an unnamed “large financial institution,” the parties said Thursday.
Nonperforming assets include loans more than 90 days past due and collateral seized to satisfy the debt.
Gibraltar holds a majority interest in the venture and said it will conduct the day-to-day management and workout of the portfolio, which includes undeveloped acreage and partially completed subdivisions.
Toll said the assets are in nine states, primarily in the southeastern U.S. and Washington D.C.
Toll was due to open in March two Connecticut luxury-home communities — one in Wallingford, the other in Stonington – with a combined 75 units. Both are its first single-family developments in Connecticut in five years.
Toll’s Connecticut condominium and townhome communities include Bethel Meadows, Regency at Berlin, Regency at Prospect, The Summit at Bethel, and Rivington by Toll Brothers in Danbury.
