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 to assist with the sale.
Most of this CRE loan portfolio is comprised of multifamily properties, primarily located in New York City, with around $15 billion secured by rent stabilized or rent controlled residences. In order to uphold its statutory obligation to maximize availability and affordability for low- and moderate-income individuals, the FDIC will place these loans into one or more joint ventures where they will retain a majority equity interest.
The winning bidders/partners chosen for each JV will act as managing members responsible for management, servicing and ultimate disposition of said loans according to an agreed upon operating agreement while being subject to stringent monitoring from FDIC representatives. Marketing efforts are expected take three months before transactions are completed by year-end 2023 per their statement released Monday afternoon
