FirstSun Capital Bancorp in Denver sold a portfolio of multifamily loans it inherited from its purchase of First Foundation.
FirstSun said in a press release that it sold loans with a total contractual balance of $890 million to entities affiliated with Brookfield Asset Management. The pricing wasn’t disclosed.
“Successfully completing the sale of this performing multifamily commercial real estate loan pool is a significant milestone in our balance sheet repositioning strategy,” Rob Cafera, FirstSun’s chief financial officer, said in the release. “We were pleased to partner with Brookfield … on this mutually beneficial transaction. We also remain focused on all integration efforts relating to the First Foundation acquisition and we believe we are making great progress in our execution.”
FirstSun said it expects to complete the remainder of its previously disclosed balance sheet loan downsizing by the end of June. The company plans to use the proceeds from the multifamily loan sale to pay down high-cost brokered and non-brokered deposits that were held by First Foundation.
Stifel was the structuring agent and Dechert was FirstSun’s legal advisor. Kirkland & Ellis and Brownstein Hyatt Farber Schreck advised Brookfield.