The final transaction of $1.1 billion has been completed following the marketing of the $33 billion commercial real estate (CRE) portfolio retained in receivership after the failure of Signature Bank, New York, N.Y., the Federal Deposit Insurance Corp. (FDIC) said Wednesday.
According to the agency, an entity “directly controlled” by Santander Bank, N.A., paid the billion dollars for a 20% equity interest in SIG RCRS A/B MF 2023 Venture LLC (the venture), a newly formed entity wholly owned by the FDIC-Receiver, the entity created by the FDIC to assume the assets of Signature when it failed last spring.
The agency said the receiver would retain an 80% equity interest in the venture. The receiver, the FDIC said, contributed to the venture approximately $9.0 billion of loans collateralized by rent-stabilized or rent-controlled properties.
The entity controlled by Santander Bank is SBNA Investor LLC, the FDIC said.
The FDIC said that the 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, the agency said, 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.