$60 billion in loans, largely CRE, from Signature Bank up for sale this summer, FDIC announces

A $60 billion portfolio containing largely commercial real estate (CRE) loans of the failed Signature Bank will soon be up for sale, the federal insurer of bank deposits said late Monday.

According to the Federal Deposit Insurance Corp. (FDIC), the portfolio of the bank – closed in March by state regulators and put under the receivership of the FDIC – also includes commercial loans and a smaller pool of single-family residential loans. The CRE loans, however, include a concentration of multifamily properties, primarily located in New York City, the FDIC said in a release.

The agency said it expects to begin marketing the Signature loans later this summer. Newmark & Company Real Estate, Inc. was retained by the agency as an advisor on the sale. The agency urged those interested in purchasing the loans to contact the firm to obtain further information about the sale and qualifications to participate.

Signature Bank was closed March 12 by the New York State Department of Financial Services (NYDFS), which immediately named the FDIC receiver. The FDIC, in turn, transferred all the deposits and substantially all the assets of Signature Bank to Signature Bridge Bank, N.A., a full-service bank that would be operated by the FDIC as it attempted to sell the bridge bank to potential bidders. The transfer of deposits was completed under the “systemic risk exception.”

FDIC Announces Upcoming Sale of the Loan Portfolio from the Former Signature Bank, New York, New York