The Federal Deposit Insurance Corp. has completed the final sale from the $33 billion CRE portfolio of the failed Signature Bank:  an entity controlled by Santander Bank paid $1.1 billion for a 20% equity interest in a joint venture with FDIC, which is retaining an 80% interest in the structure and which contributed $9 billion of loans collateralized by rent-stabilized or rent-controlled properties.

In a previous transaction,  FDIC awarded a 5% equity stake in $5.8 billion in Signature Bank loans to a bid from Related Fund Management and two nonprofits, Community Preservation Corp. and Neighborhood Restore. The loan package, which was collateralized by rent-stabilized or rent-controlled multifamily properties in New York City, was awarded in two joint ventures in which FDIC will retain a 95% equity interest.

The largest transaction from the bidding process was a partnership among Blackstone Real Estate Debt Strategies, Blackstone Real Estate Income Trust, Canada Pension Plan Investment Board and funds affiliated with Rialto Capital, which acquired a 20% equity stake for $1.2 billion in a JV with FDIC for  a $16.8 billion senior mortgage loan portfolio. FDIC is maintaining an 80% ownership stake in the venture and provided financing equal to 50% of the venture's value.