Bilzin Sumberg Represents Lennar in Acquisition of 40 Percent Equity Interest In Excess of $3 Billion of Real Estate Loans

Press Release
March 5, 2010

Miami, FL Bilzin Sumberg, which represents Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's largest homebuilders, and Rialto Capital, a real estate investment management company focused on distressed real estate asset investments, announced the closing of two multibank structured asset transactions with the Federal Deposit Insurance Corporation ("FDIC"). In the joint venture with the FDIC, Bilzin Sumberg's client, which was the winning bidder, acquired a 40 percent equity interest in two limited liability companies formed by the FDIC to own and manage the separate distressed real estate loan portfolios having a total outstanding balance in excess of $3 billion. The FDIC retains a 60 percent equity interest in the limited liability companies.

The loans are comprised of approximately 5,500 distressed commercial and residential real estate loans from 23 failed banks. The loans are backed by a variety of real estate, including partially developed land, residential units, raw land, finished home sites, retail space and office and industrial space.

Lennar contributed $243 million towards the total $1.22 billion purchase price of the portfolios, while the remaining balance was financed by the FDIC - $365 million in equity and $627 million in non-recourse financing at zero percent interest for seven years. The transactions were closed on February 9, 2010.

Complicating the transactions was the short time frame for closing approximately three weeks from the cessation of bidding to closing. Bilzin Sumberg's team of attorneys, led by Corporate & Securities Group co-chair Alan D. Axelrod, handled the preparation and finalization of all closing documents and agreements, as well as the interaction with the FDIC's in-house and outside counsels.

About Bilzin Sumberg

Bilzin Sumberg Baena Price & Axelrod LLP is a full-service, commercial law firm based in Florida. The firm has extensive experience in the areas of capital markets, corporate and securities law, environmental law, land use and government relations, litigation, mergers and acquisitions, real estate, restructuring and bankruptcy, tax and wealth transfer.

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Alan D. Axelrod
Chair, Corporate & Finance
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