OceanFirst Financial in Red Bank, N.J., agreed to sell a portfolio of multifamily loans as part of a balance sheet repositioning.
The $23 billion-asset company said in a press release that it will sell $1.4 billion in loans, representing the majority of the multifamily loans it inherited when it bought Flushing Financial, to an unnamed buyer. The sale eliminated the majority of the bank’s exposure to rent-regulated properties in New York City.
OceanFirst didn’t disclose the price, but it said the sale is consistent with initial valuation estimates disclosed when the acquisition was announced.
The proceeds will be used to buy highly liquid, investment-grade securities with average yields similar to the yields of the loans being sold.