The Bank Slate


FDIC forms LLC in quest to sell Signature CRE loans

The Federal Deposit Insurance Corp. has formed a new venture as part of its plan to sell commercial real estate loans once held by the failed Signature Bank.

The FDIC receivership said in a press release that it created SIG CRE 2023 Venture, selling a 20% equity stake in the limited liability corporation to Hancock JV Bidco, an entity indirectly controlled by Blackstone and other investors.

The investor group paid $1.2 billion for the equity stake in the LLC, which includes $16.8 billion of CRE loans collateralized by office, retail and market-rate multifamily properties. The bridge bank will retain an 80% equity stake.

As part of the transaction, bridge bank provided financing equal to half of the venture’s value, resulting in the venture issuing a purchase money note in the original principal amount of about $6 billion to the FDIC–Receiver.

The bridge bank, which has been marketing a $33 billion CRE loan portfolio, said it will soon announce results for the rent–stabilized or rent–controlled multifamily loan portfolio transactions.

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