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CPC and Related Take Stake in Signature Bank Rent-Regulated Loans
The FDIC said Friday it had awarded a 5% equity interest in $5.8 billion of Signature Bank multifamily loans in two separate ventures to a partnership led by The Community Preservation Corporation (CPC), with Neighborhood Restore HDFC and Related Fund Management as partners. The news follows Thursday’s announcement that the FDIC sold a 20% stake in $16.8 billion of commercial real estate loans formerly held by Signature.
The ventures include 868 permanent loans, secured by properties located mainly in New York City and containing nearly 35,000 units. Eighty percent are characterized as rent-regulated. CPC will be responsible for servicing the loans. Building ownership and management of the associated properties will remain the same.
For this portfolio, the FDIC, acting as receiver for the Signature loans, engaged with New York City and New York State housing authorities and government agencies as well as community-based organizations, to obtain their input and provide information as the FDIC-Receiver developed its marketing and disposition strategy.
“We are committed to a mission of preserving the long-term affordability as well as the physical and financial stability of these properties,” said Rafael Cestero, CEO of CPC. “We look forward to working with our borrowers and community partners to accomplish this mission.”
At Related Fund Management, managing principal Justin Metz said, “Related Fund Management is proud to support CPC and Neighborhood Restore with a strategic equity investment in this venture. Our collective expertise, track record and mission to preserve affordable housing will help secure the future of these buildings.”
Newmark’s Doug Harmon and Adam Spies advised the FDIC, as they’d done on the Blackstone-led transaction announced Thursday.
- ◦Sale/Acquisition
