A 5% equity ratio in the commercial real estate assets held formerly by a failed New York bank was sold late last week that includes $5.8 billion of rent stabilized or rent controlled multifamily loans, the federal bank deposit insurance agency said Friday.
According to the Federal Deposit Insurance Corp. (FDIC), the FDIC Signature Bridge Bank Receivership (the FDIC-controlled receiver for Signature Bank of New York, which failed in March) sold the equity interest to Community Preservation Corporation (CPC), a nonprofit multifamily finance company founded in 1974 to provide financial resources to stabilize and revitalize underserved communities.
The $5.8 billion of loans are collateralized by rent-stabilized or rent-controlled multifamily properties, the FDIC said,
The agency said the FDIC-Receiver “has a statutory obligation to maximize the preservation of the availability and affordability of residential real property for low- and moderate-income individuals.” The agency said the terms of the sale include requirements that facilitate the financial and physical preservation of underlying collateral.
The agency said CPC will be responsible for the management, servicing and liquidation of the respective assets. The group will also be required to manage the portfolios in accordance with the terms of the sale, subject to comprehensive monitoring and oversight by the FDIC-Receiver.