real estate

Blackstone Affiliate Wins Bid for Signature Bank CRE Loans

The Federal Deposit Insurance Corporation, as receiver of the failed Signature Bridge Bank, N.A. (FDIC–Receiver), said Thursday that a Blackstone affiliate won the bidding for a $16.8-billion portfolio of Signature commercial real estate loans.

Hancock JV Bidco L.L.C., an entity indirectly controlled by Blackstone and investors including Canada Pension Plan Investment Board’s CPP Investments and funds managed by Rialto Capital, paid $1.2 billion for a 20% equity interest with 50% financing in SIG CRE 2023 Venture LLC, a newly formed entity wholly owned by the FDIC–Receiver. The FDIC–Receiver will retain an 80% equity interest.

The loans are collateralized by office, retail and market–rate multifamily properties, the FDIC said. SIG CRE 2023 Venture does not hold any loans collateralized by rent–stabilized or rent–controlled multifamily properties.

Blackstone will be the lead asset manager of the portfolio and Rialto Capital will act as the loan servicer and operating partner, the companies said Thursday.

The FDIC–Receiver announced the start of the marketing process for the loans in September. The transaction was marketed on a competitive basis, with a seven–week due diligence period for qualified parties. Results for the rent–stabilized or rent–controlled multifamily loan portfolio transactions, backed primarily by properties in New York City, are expected to be announced soon.

JLL served as real estate advisor to Blackstone, CPP Investments and Rialto Capital. Simpson Thacher & Bartlett LLP; Gibson, Dunn & Crutcher LLP; Ropes & Gray LLP; Davis Polk & Wardwell LLP and Bilzin Sumberg Baena Price & Axelrod LLP served as legal advisors

Pictured: A Signature Bank branch in March, shortly after the bank’s collapse.


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