Real estate finance company
Funds affiliated with Fortress Investment Group in New York have purchased Colony's equity and most of its assets. Terms of the transaction were not disclosed.
The new owners also are rebranding Colony, which will now operate under the name Corvest American Lender. Colony's senior management team will stay with the company.
"The new relationship with the Fortress funds, given their experience in the specialty finance area, will allow us to expand our market leading position in the growing, yet underserved, single-family rental market," said CoreVest Chief Financial Officer Christopher Hoeffel in a press release.
Fortress shareholders earlier this month approved an acquisition by subsidiaries of SoftBank Group Corp. in Tokyo. SoftBank plans to acquire Fortress for $3.3 billion in cash, but the deal is subject to regulatory approval and closing conditions. If the deal clears these hurdles, it could close in this year's second half.
Affiliates of Fortress hold some significant positions in U.S. real estate and mortgage markets.
