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Press release from PR Newswire

ST Residential Assumes Ownership of Allure Waikiki

Monday, November 29, 2010

ST Residential Assumes Ownership of Allure Waikiki17:02 EST Monday, November 29, 2010CHICAGO, Nov. 29, 2010 /PRNewswire/ -- ST Residential, a world class asset management company led by Greenwich, CT-based Starwood Capital Group (NYSE: STWD) and private-equity firm TPG of Fort Worth, TX, along with WLR LeFrak and Perry Capital, has assumed ownership of Allure Waikiki.Allure Waikiki is a 35-story condo tower in the heart of Honolulu's Waikiki beach that was completed earlier this year.  Allure was completed at a time when there was a tremendous amount of uncertainty in the economy, especially with high-rise residential real estate.  "Allure Waikiki is a fantastic property in a very desirable location," says CEO Wade Hundley, who leads the company with 20 years of experience in various aspects of the real estate and hospitality businesses.  "We are in the process of analyzing the additional enhancements we will make to the property in order to bring it to the standards of an ST Collection property.  ST is taking a thoughtful approach to its portfolio, by bringing an eye for design and a vision for real estate that is unique to the marketplace at this time."ST was formed after the Chicago-based Corus Bank failed on September 11, 2009.  The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver, and thus became responsible for numerous residential real estate assets and construction loans.The FDIC needed a financially stable, real estate savvy partner to maximize the value of the real estate portfolio by infusing critical financial capital and knowledge, to market and sell the properties to individual home owners.  Enter ST, which out-bid seven rivals to win Corus Bank's $4.5 billion real estate loan portfolio with a combined bid of $554 million for 40% of the equity in the joint venture with the FDIC; the FDIC is providing financing and initially owns a 60% equity stake in the venture.  "ST brings peace of mind both to prospective buyers that their purchase will be well developed and well managed into the future, and to real estate brokers who will have the confidence that their transactions will successfully close," said Hundley.About ST ResidentialST Residential leads a public-private partnership between the FDIC and a consortium of esteemed private-equity investors, and manages a nationwide condominium-construction project portfolio. Members of the private equity consortium include Starwood Capital, TPG, Perry Capital and WLR LeFrak. By managing its portfolio with an unmatched level of detail and tailoring projects to the communities they serve, the company strives to be the standard bearer for luxury condominium projects. For more information, visit www.stresidential.com. SOURCE ST ResidentialFor further information: Pete Marino, +1-312-577-1754, Pmarino@digcommunications.com, for ST Residential