FDIC opens bidding for Signature Bank CRE loan portfolio

The FDIC today announced the start of the marketing process for the approximately $33 billion commercial real estate loan portfolio retained in receivership following the failure of Signature Bank in March. Most of the portfolio is comprised of multifamily properties, primarily located in New York City, with approximately $15 billion of the loans secured by multifamily residences that are rent-stabilized or rent-controlled.

The FDIC said it has a statutory obligation to maximize the preservation of the availability and affordability of residential real property for low- and moderate-income individuals. As a result, the agency will place the rent-stabilized or rent-controlled loans in one or more joint ventures with the FDIC retaining a majority equity interest. The winning bidders, or partners, will act as the managing member of the joint venture and will be responsible for the management, servicing and ultimate disposition of the loans, the agency said.

Marketing will take place over the next three months and transactions are expected to be completed by the end of 2023. The FDIC has retained Newmark & Company Real Estate as an adviser.