Opportunities For Real Estate Funds In Troubled Assets Program

Article by James M. Broderick , Philip H. Ebling , Gilbert G. Menna , Andrew C. Sucoff , Jacob A. Warden and Adam N. Weisenberg

This week, the U.S. Treasury announced the much-anticipated details of the Public Private Investment Program ("PPIP") that was introduced in summary form by Treasury Secretary Timothy Geithner last month.¹ The program, which is part of the Obama Administration's broader "Financial Stability Plan," focuses on the purchase of what were described as "troubled assets" under the Troubled Assets Relief Program ("TARP"), part of the Emergency Economic Stabilization Act of 2008 ("EESA") enacted last October. Although the TARP was originally proposed as a purchase program for troubled loans and mortgage-backed securities, the Bush Administration applied the first portion of the TARP proceeds toward direct capital infusions into banking institutions. The objectives of the PPIP are much closer to the original objectives of the TARP: to