The FDIC announced on Monday that it has 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 appointed Newmark as an advisor on the sale.
Most of this CRE loan portfolio consists of multifamily properties, primarily located in NYC, with around $15 billion secured by rent stabilized or rent controlled residences. To uphold its statutory obligation to maximize availability and affordability for low- and moderate-income individuals, FDIC will place these loans into one or more joint ventures where they will retain a majority equity interest.
The winning bidders/partners chosen to manage these JVs must adhere to stringent monitoring requirements outlined within each operating agreement while managing, servicing and disposing of the loans accordingly. Marketing is expected to take three months before transactions are completed by year-end 2023 according to FDIC’s statement
