The Federal Deposit Insurance Corp. plans to market $33 billion of commercial real estate loans that were held by the failed Signature Bank in New York.
The loans, which the FDIC retained after regulators closed Signature in March, are largely secured by apartments in the New York area.
The FDIC said it is setting up joint ventures to market about $15 billion of loans secured by rent-stabilized or rent-controlled units to fulfill its obligation to protect low-income housing availability. The agency will retain a majority equity interest in the joint venture.
“The JV operating agreement will provide certain requirements that facilitate the financial and physical preservation of these loans and underlying collateral,” the agency said.
Winning bidders will act as the joint venture’s managing member and will be responsible for the management, servicing and disposition of the loans.
Newmark & Company Real Estate is assisting the FDIC will the sale.