{"id":1004694305,"date":"2023-12-15T02:41:07","date_gmt":"2023-12-15T10:41:07","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004694305"},"modified":"2023-12-18T01:52:36","modified_gmt":"2023-12-18T09:52:36","slug":"blackstone-jv-buys-stake-in-17b-signature-bank-portfolio","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/blackstone-jv-buys-stake-in-17b-signature-bank-portfolio\/","title":{"rendered":"Blackstone JV Buys Stake in $17B Signature Bank Portfolio"},"content":{"rendered":"
\"Blackstone,<\/a>

Blackstone, CPP and Rialto have agreed to pay $1.2 billion for their stake in the Signature Bank loan portfolio secured by a collection of mostly NYC properties. Image by Todd Quackenbush\/Unsplash.com<\/em><\/p><\/div>\n

Blackstone<\/strong>\u00a0subsidiaries Blackstone Real Estate Debt Strategies<\/strong> and\u00a0Blackstone Real Estate Income Trust<\/strong>, together with the Canada Pension Plan Investment Board\u00a0<\/strong>and Rialto Capital<\/strong><\/span>, entered into a joint venture with the Federal Deposit Insurance Corp. <\/strong>to acquire a 20 percent stake in the $16.8 billion senior mortgage loan portfolio retained following Signature Bank\u2019s failure, paying $1.2 billion. The FDIC will maintain 80 percent ownership and has provided 50 percent of the venture\u2019s value in financing.<\/p>\n

The portfolio encompasses more than 2,600 loans for retail, office and multifamily properties mainly concentrated in the New York City area<\/a>. Some 90 percent of the loans are fixed-rate with low in-place coupons and strong in-place debt service coverage, according to Blackstone. The company will act as the lead asset manager and Rialto Capital will be the loan servicer and operating partner.<\/p>\n

The $16.8 billion debt portfolio is a fraction of the overall collection of 5,137 real estate loans worth $33.2 billion, referred to as SIGCRE-23. Blackstone has been considered<\/a>, for a while now, the lead bidder on the tranche. That is, in turn, part of an even larger $60 billion portfolio in Signature Bank loans being sold by Newmark <\/strong>on behalf of the FDIC.<\/p>\n

Beyond the Signature Bank portfolio, Blackstone has continued to close deals worthy of the largest real estate owner in the world, most recently entering a $7 billion joint venture with Digital Realty aiming to develop data centers<\/a>.<\/p>\n

A competitive bidding process<\/h2>\n

The marketing for the Signature Bank portfolio started in September and included a seven-week due diligence period, Connect CRE <\/em>reported. At the time of its collapse in March, Signature Bank held assets worth $110.4 billion, of which $88.6 billion were in deposits.<\/span><\/p>\n

JLL worked as real estate advisor for Blackstone, CPP and Rialto. Legal advisors for the partners included Simpson Thacher Bartlett LLP, Gibson, Dunn & Crutcher LLP, Ropes & Gray LLP, Davis Polk & Wardwell LLP, along with Bilzin Sumberg Baena Price & Axelrod LLP.<\/p>\n","protected":false},"excerpt":{"rendered":"

CPP Investments and Rialto Capital are also partners in the transaction.<\/p>\n","protected":false},"author":3120,"featured_media":1004694409,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21783,23891,1600,21742],"tags":[32892,33308,52003,32796,33028,34333],"class_list":["post-1004694305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-investment","category-national","category-new-york","category-latest","tag-blackstone","tag-canada-pension-plan-investment-board","tag-fdic","tag-jll","tag-rialto-capital-management","tag-simpson-thacher-bartlett"],"acf":[],"yoast_head":"\nBlackstone JV Buys Stake in $17B Signature Bank Portfolio - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"A Blackstone led partnership entered a joint venture with the FDIC to acquire a 20 percent stake in Signature Bank's senior loan portfolio.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/blackstone-jv-buys-stake-in-17b-signature-bank-portfolio\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Blackstone JV Buys Stake in $17B Signature Bank Portfolio\" \/>\n<meta property=\"og:description\" content=\"A Blackstone led partnership entered a joint venture with the FDIC to acquire a 20 percent stake in Signature Bank's senior loan portfolio.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/blackstone-jv-buys-stake-in-17b-signature-bank-portfolio\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-15T10:41:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-18T09:52:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/12\/todd-quackenbush-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Radu Corfus\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-jv-buys-stake-in-17b-signature-bank-portfolio\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/blackstone-jv-buys-stake-in-17b-signature-bank-portfolio\/\",\"name\":\"Blackstone JV Buys Stake in $17B Signature Bank Portfolio - 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