The Federal Deposit Insurance Corporation (FDIC) announced on Friday that it has awarded a 5% equity interest in $5.8 billion worth of multifamily loans from Signature Bank to a partnership led by The Community Preservation Corporation (CPC), along with Neighborhood Restore HDFC and Related Fund Management as partners. This comes after the FDIC’s announcement on Thursday that it had sold a 20% stake in $16.8 billion of commercial real estate loans previously held by Signature.
These ventures consist of 868 permanent loans, secured by properties primarily located in New York City and containing approximately 35,000 units, with 80% being rent-regulated. CPC will be responsible for servicing these loans while building ownership and management will remain unchanged.
In order to develop its marketing and disposition strategy for this portfolio, the FDIC worked closely with housing authorities at both the city and state level as well as government agencies and community-based organizations to gather input and provide information.
“We are dedicated to preserving long-term affordability, physical stability, and financial stability for these properties,” stated Rafael Cestero CEO of CPC. “We look forward to collaborating with our borrowers and community partners towards achieving this goal.”
Justin Metz managing principal at Related Fund Management also expressed his support saying “Related Fund Management is proud to invest strategically alongside CPC and Neighborhood Restore in this venture.” He added that their combined expertise, track record,and mission towards preserving affordable housing will help secure the future success of these buildings.
Newmark’s Doug Harmon & Adam Spies advised the FDIC on this transaction just like they did for Thursday’s Blackstone-led deal announcement.
This news highlights another successful venture between major players within CRE financing industry without mentioning any specific companies or platforms involved.
