Angelo Gordon Acquires Bad Commercial Mortgages from Bancorp Bank

Angelo Gordon & Co. has acquired at a discount $267 million in soured commercial mortgages from the branchless lender Bancorp Bank.

The $26.5 billion investment firm, founded by John Angelo and Michael Gordon, agreed to pay $209.6 million for the pool of loans through a newly registered and shared legal entity named Walnut Street, according to a recent regulatory filing. Angelo Gordon is a 51% majority owner of the vehicle and Bancorp Bank controls 49%. Bancorp Bank took a $3.9 million charge on the sale.