Investment vehicles managed by Colony Capital LLC, including Colony Financial Inc., bought about $1.02 billion in loans from the Federal Deposit Insurance Corporation, Colony said in a statement.

Colony has a 40 percent equity interest in a newly-formed limited liability company created to hold the acquired loans while the FDIC holds the remaining 60 percent.

Colony paid about $90.5 million for its equity interest, excluding working capital and transaction costs.

The financing of the transaction includes $233 million of notes provided by the FDIC.

The vast majority of the 1,200 loans sold to Colony are commercial real estate loans.

Deutsche Bank served as an adviser to the FDIC on the sale of the 40 percent interest to Colony.