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FDIC Markets $33B of Signature Bank CRE Loans
The FDIC said Monday afternoon it had begun a marketing process for the approximately $33 billion commercial real estate loan portfolio retained in receivership following the failure of Signature Bank in New York. The agency has retained Newmark as an advisor on the sale.
The majority of the CRE loan portfolio being marketed is comprised of multifamily properties, primarily located in New York City. Approximately $15 billion of the CRE loans secured by multifamily residences are rent stabilized or rent controlled.
“The FDIC has a statutory obligation, among other factors, to maximize the preservation of the availability and affordability of residential real property for low- and moderate-income individuals,” the agency said in a statement. “To support this obligation, the FDIC will place the rent stabilized or rent controlled loans in one or more joint ventures with the FDIC retaining a majority equity interest in the JV.”
Although the FDIC will retain a majority equity interest in the JVs, the winning bidders, or partners, will act as the managing member of the JV and will be responsible for the management, servicing and ultimate disposition of the loans. The JV partner will be required to manage the portfolio in accordance with the JV operating agreement and will be subject to stringent monitoring.
Marketing of the former Signature Bank’s CRE portfolio will take place over the next three months and the transactions are expected to be completed by year-end 2023, according to the FDIC.
- ◦Financing
