Santander Bank Secures 20% Equity in Signature Bank's $9 Billion Rent-Regulated Portfolio

Santander Bank Acquires Minority Stake in Signature Bank's Rent-Regulated Loan Portfolio

In a recent development, Santander Bank has secured a minority stake in the remaining balance of Signature Bank's rent-regulated loan portfolio. This acquisition was facilitated by the Federal Deposit Insurance Corp. (FDIC), which announced the deal on Wednesday.

Details of the Deal

Santander Bank was granted a 20 percent equity interest in a joint venture that encompasses approximately $9 billion of loans. These loans are primarily backing rent-stabilized or rent-controlled properties in New York City. The bank was able to secure this stake with a bid of $1.1 billion. The FDIC will retain an 80 percent stake in the joint venture.

Other Stakeholders

This announcement comes on the heels of a similar deal in which the Community Preservation Corporation (CPC), in collaboration with Related Fund Management and Neighborhood Restore, won a 5 percent stake in $5.8 billion of Signature loans. The Manhattan-based nonprofit, CPC, is spearheading the venture as the managing partner.

Conclusion of Signature Loans Auction

The FDIC's announcement marks the end of the auction of $33 billion in Signature loans. This auction was initiated by the FDIC following the seizure of the bank by regulators in March. As part of this process, Blackstone was also awarded a 20 percent equity stake in $17 billion Signature loans tied to non-regulated CRE assets. This was part of a joint venture with Rialto Capital and Canada Pension Plan Investment Board.

Role of Newmark in the Transaction

Newmark's Adam Spies and Douglas Harmon acted as financial advisors to the FDIC in this transaction. At the time of writing, officials at Santander have not yet commented on the deal.

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