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Blackstone Venture Finds Buyer for Signature Debt

It appears the Blackstone venture that picked up a 20% stake in nearly $17 billion of the former Signature loans last December has found a buyer for some of them. Bloomberg Law reports that Maverick Real Estate Partners has acquired $247 million in debt backed by eight New York properties that were part of the Signature Bank loans..

The sale should invite interest if not scrutiny because could help highlight what current values for properties actually are. The lack of price discovery has been a thorn in the side of markets since 2022, when interest rates kept rising and valuations, dropping.

However, it is unclear exactly what Maverick bought, The Real Deal points out.

The majority of the $33 billion CRE loan portfolio from Signature Bank’s collapse early in 2023 is secured by multifamily properties, primarily located in New York City. About $15 billion of the CRE loans are on rent-stabilized or rent controlled multifamily units. The Blackstone team was shopping around performing loans, largely backed by apartment buildings, but as the Real Deal notes, Maverick is a buyer of distressed loans. The company’s “usual game is picking up distressed loans on the cheap, then charging default interest at rates up to 24 percent, plus fees and legal costs,” the publication said.
Reprinted with permission from the Mon, 26 Feb 2024 06:26:18 EST online edition of GlobeSt © 2024 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.