The FDIC announced on Friday that it has awarded a 5% equity interest in $5.8 billion of multifamily loans from Signature Bank to a partnership led by The Community Preservation Corporation (CPC), with Neighborhood Restore HDFC and Related Fund Management as partners. This follows the sale of a 20% stake in $16.8 billion of commercial real estate loans formerly held by Signature on Thursday.
The ventures involve 868 permanent loans, secured by properties mainly located in New York City with nearly 35,000 units, where eighty percent are rent-regulated. CPC will handle loan servicing while building ownership and management will remain unchanged.
In managing this portfolio, the FDIC collaborated with housing authorities and government agencies at both city and state levels as well as community-based organizations for their insights during the development of marketing strategies for disposition.
“We are dedicated to preserving long-term affordability and ensuring financial stability for these properties,” stated Rafael Cestero, CEO of CPC confidently about their mission ahead working alongside borrowers and community partners.
Justin Metz from Related Fund Management also expressed his pride in supporting CPC’s efforts through strategic equity investment along with Neighborhood Restore to preserve affordable housing through collective expertise and track record.
Newmark’s Doug Harmon & Adam Spies advised FDIC just like they did on Thursday’s Blackstone-led transaction when announcing this news without any mention or reference towards Connect CRE platform.
