New York City’s NYCERS pension fund, valued at $86 billion and designated for civil employees, is making a strategic investment of up to $60 million in a nonprofit-led partnership. This initiative aims to protect nearly 35,000 rent-stabilized units that were impacted by the collapse of Signature Bank. As reported by Bloomberg, the partnership will be headed by Community Preservation Corp., with Related Fund Management and Neighborhood Restore HDFC also holding stakes.
The primary objective of this deal is to preserve affordable housing options in Manhattan and the Bronx. In 2023, concerns arose about Signature Bank’s loan portfolio after its failure; among these loans were those tied to rent-stabilized buildings. The FDIC then sold off approximately $33 billion worth of commercial property loans – including those related to rent-regulated properties – which now account for around 35,000 units (80% being regulated). NYCERS’ involvement in this venture aligns with their goal of generating market-rate returns through investments in affordable housing.
This news highlights NYCERS’ commitment towards preserving accessible living options for New Yorkers while simultaneously seeking profitable opportunities within the real estate market.
