Santander Bank Wins Stake in Remaining Signature Rent-Regulated Pool With $1.1B Bid
By Andrew Coen December 20, 2023 2:12 pm
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Santander Bank was awarded a minority stake in the remaining balance of Signature Bank (SBNY)’s rent-regulated loan portfolio by the Federal Deposit Insurance Corp., the agency announced Wednesday.
The FDIC gave Santander a 20 percent equity interest in a joint venture of roughly $9 billion of loans backing rent-stabilized or rent-controlled properties in New York City following a $1.1 billion bid. An 80 percent stake in the JV will be maintained by the FDIC.
“We are a major participant in the U.S. multifamily space and this transaction plays to our strengths,” Ana Botín, Banco Santander executive chair, said in a statement.
Santander was awarded a piece of the Signature loans five days after Community Preservation Corporation (CPC) in partnership with Related Fund Management and Neighborhood Restore won a 5 percent stake in $5.8 billion of Signature loans. CPC, a Manhattan-based nonprofit, is leading the venture as managing partner.
Wednesday’s announcement marks the conclusion of $33 billion in Signature loans that were auctioned by the FDIC after the ban was seized by regulators in March. The FDIC also awarded Blackstone a 20 percent equity stake in $17 billion Signature loans connected to non-regulated CRE assets as part of a JV with Rialto Capital and Canada Pension Plan Investment Board.
Newmark (NMRK)’s Adam Spies and Douglas Harmon served as financial advisor to the FDIC in the transaction.
Andrew Coen can be reached at acoen@commercialobserver.com
