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FDIC Signature Bank Receivership Sells 20 Percent Equity Interest in Entity Holding $9 Billion Rent–Stabilized / Rent–Controlled Multifamily Loans

December 20, 2023 / Source: FDIC

For release

WASHINGTON — The Federal Deposit Insurance Corporation, as Receiver of Signature Bridge Bank, N.A. (FDIC–Receiver), today completed the final transaction following the marketing of the $33 billion Commercial Real Estate (CRE) portfolio retained in receivership after the failure of Signature Bank, New York, New York.

SBNA Investor LLC (SBNA), an entity directly controlled by Santander Bank, N.A., paid $1.1 billion for a 20 percent equity interest in SIG RCRS A/B MF 2023 Venture LLC (Venture), a newly formed entity wholly owned by the FDIC–Receiver. The FDIC–Receiver will retain an 80 percent equity interest in the Venture. The FDIC–Receiver contributed to the Venture approximately $9.0 billion of loans collateralized by rent–stabilized or rent–controlled properties.

Among other factors, 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 terms of each transaction include requirements that facilitate the financial and physical preservation of underlying collateral. SBNA will be responsible for the management, servicing and liquidation of the Venture’s assets. SBNA will also be required to manage the portfolio in accordance with the terms of the transaction, subject to comprehensive monitoring and oversight by the FDIC–Receiver.

The FDIC–Receiver announced the start of the marketing process in September 2023. The transaction was marketed on a competitive basis, with a seven–week due diligence period for qualified parties. The FDIC–Receiver offered for bidding a 20 percent equity interest in the Venture. The FDIC–Receiver carefully considered the FDIC–Receiver’s statutory obligations in the selection of the winning bidder.

For this portfolio, the FDIC–Receiver engaged with New York City and New York State housing authorities and government agencies, as well as community–based organizations, to obtain their input and provide information on the FDIC–Receiver’s efforts as the FDIC–Receiver developed its marketing and disposition strategy.

Read more about the FDIC–Receiver’s asset dispositions.

FDIC: PR-107-2023