The Federal Deposit Insurance Corporation (FDIC) has announced the sale of a five percent equity interest in entities holding $5.8 billion of rent-stabilized and rent-controlled multifamily loans, marking another significant phase in the receivership process following the failure of Signature Bridge Bank.
In two separate transactions, the FDIC-Receiver established two new ventures and sold a five percent equity interest in each to Community Preservation Corporation (CPC), a nonprofit multifamily finance company. The FDIC-Receiver retained a 95 percent equity interest in both ventures, contributing approximately $5.8 billion of loans collateralized by rent-stabilized or rent-controlled multifamily properties.
The sale is part of the broader efforts by the FDIC to maximize the preservation of residential real property availability and affordability for low- and moderate-income individuals. CPC will be responsible for the management, servicing, and liquidation of each venture’s assets, adhering to specific terms that facilitate the financial and physical preservation of underlying collateral.
The transaction process involved a competitive bid with a seven-week due diligence period for qualified parties. The FDIC-Receiver engaged with New York City and State housing authorities, government agencies, and community-based organizations to gather input and provide information on its efforts during the marketing and disposition strategy development.
With this sale, the FDIC-Receiver expects to announce additional results for the rent-stabilized or rent-controlled multifamily loan portfolio transactions in the near future. The FDIC’s asset dispositions continue to be a focal point in the ongoing receivership process.
RELATED: FDIC Sells 20% Stake in $9B Multifamily Loan Portfolio
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes|Real Estate
- Source: Official Source ↗
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