The agency sold a stake in a $1.85 billion commercial real estate portfolio to a group led by Colony Capital, the Los Angeles private equity shop that owns the Michael Jackson Neverland ranch and is selling Annie Leibowitz’s photo library.

The portfolio is made up of 1,660 loans from 22 banks that failed over the past two years, the FDIC said. Half the loans are behind on payments and 73% are in five states hard hit by the real estate bust, Nevada, California, Colorado, Arizona, and Georgia.

Colony and New York-based Cogsville Capital, a minority-owned investment group run by a former U.S. soccer player, will put up $218 million for a 40% stake in the company that will acquire the portfolio. The FDIC will provide no-interest financing for seven years and share in profits by holding the remaining 60% stake.

The purchase is Colony’s second acquisition of failed bank assets this year. The group paid $91 million for a 40% stake in January’s sale of $1 billion in commercial real estate loans once held by failed banks.

The sale comes as the FDIC works to clear a record backlog of failed-bank assets. The agency had $39 billion of receivership assets on its books at the end of the first quarter, up from $16 billion at the end of 2008 and just $800 million at the end of 2007.