In the US, the FDIC begins selling $33 billion in Signature Bank commercial loans

The campaign should take place within the next three months and the transactions should be completed by the end of 2023

Estado content


5 Sep 2023 6:24 pm – Updated 2 minutes ago

Signature Bank office on Fifth Avenue in New York City (Bloomberg)

The Federal Deposit Insurance Corporation (FDIC) has announced the beginning of the sale process of approximately US$33 billion in commercial real estate loans held by Signature Bank, a bank that failed in the United States earlier this year.

The campaign is expected to take place over the next three months and transactions are expected to close by the end of 2023 under the supervision of Newmark & ​​Company Real Estate.

“During commercialization, the FDIC and Newmark contacted potential bidders about the qualification process,” the company said in a statement.

According to the FDIC, most of the assets are located in New York City, with a large portion ($15 billion) insured by multifamily housing with stabilized or regulated rents.

Loans with fixed or restricted returns are placed in one or more joint ventures in which the FDIC has a majority stake in the capital.

The company said the operating agreements will also provide for “certain requirements that facilitate the financial and physical security of these underlying loans and guarantees.”