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(Bloomberg) -- Private equity firm AVG Partners bought the defaulted mortgage on UBS Group AG’s giant trading-floor complex in Stamford, Connecticut, according to a person with knowledge of the transaction, dealing a $100 million loss to the property’s debt investors.

AVG Partners, which already owns the property, bought the loan at a steep discount, giving the firm more time and flexibility to lease out the complex and then sell it, the person said. The owners are working on leasing it in the coming months after trying for more than a year, said Jim Fagan, senior managing director at brokerage Cushman & Wakefield’s Stamford office, which is marketing the complex to potential renters.

Michael Goodwin, a spokesman for CWCapital Asset Management, the company that controlled the defaulted mortgage, declined to comment. A call to AVG Partners wasn’t immediately returned.

The trading floor was once the largest in the world, and could hold about 1,400 workstations. As UBS shrank its trading operations after the financial crisis, it left the building, moving workers back to New York and to a building owned by Royal Bank of Scotland Group Plc nearby in Stamford.

Selling the loan garnered proceeds of $54.2 million to the commercial mortgage bond trust that owned it, Wells Fargo analysts led by Chris van Heerden wrote in a note that described portions of the asset sale. The balance on the loan was around $150 million, and combined with liquidation costs and other expenses, losses to the trust were about $100.4 million.

(Corrects to show RBS owns nearby building in Stamford in fourth paragraph.)

To contact the reporters on this story: Matt Scully in New York at mscully17@bloomberg.net, David M. Levitt in New York at dlevitt@bloomberg.net.

To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net, Dan Wilchins, Christine Maurus

©2017 Bloomberg L.P.

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