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WASHINGTON — Today, the Federal Deposit Insurance Corporation (FDIC) announced the commencement of commercialization of approximately $33 billion in commercial mortgage loan (CRE) portfolio that was being held in receivership after the failure of Signature Bank, New York, NY.
The majority of CRE’s marketed loan portfolio consists of multifamily properties, primarily located in New York City. A large portion (about $15 billion) of CRE loans secured by multi-family homes are rent-fixed or rent-controlled. The FDIC has a legal obligation to, among other factors, maximize the preservation of the availability and affordability of residential real estate for low- and moderate-income individuals. To support this commitment, FDIC will place the Rent-Regulated or Rent-Controlled Loans in one or more joint ventures (JV) with FDIC retaining a majority interest in the joint venture. In addition, the joint venture operating agreement will provide certain requirements that facilitate the financial and physical preservation of these underlying loans and guarantees.
While the FDIC will retain a majority of the share capital in the joint venture, the successful bidders, or partners, will act as a managing member of the joint venture and will be responsible for the administration, servicing, and ultimate disposition of the loans. The joint venture partner will be required to manage the portfolio in accordance with the joint venture operating agreement and will be subject to strict monitoring.
For this portfolio subset, FDIC collaborated with housing authorities and government agencies in New York City and New York State, as well as community organizations, to obtain their input and provide information on FDIC’s efforts during the development of the FDIC Federal (FDIC) for marketing and marketing. action strategy.
The former Signature Bank’s CRE portfolio will be commercialized over the next three months and transactions are expected to complete by the end of 2023. Newmark & Company Real Estate, Inc. has been retained by the FDIC. (Newmark) as a consultant in this matter. sale. Interested parties should contact NewmarkSBBPortfolio@nmrk.com for more information on the sale and participation qualifications. During the marketing process, FDIC and Newmark will communicate with potential bidders about the qualification process. For general information about the FDIC Asset Sales Program, visit the FDIC website.
This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy, or any interest in, any loans or securities.
Federal Deposit Insurance Corporation: PR-71-2023