New York City Employees' Retirement System, or NYCERS, is investing $60 million in a partnership led by the Community Preservation Corp. that will preserve nearly 35,000 rent-stabilized units affected by the Signature Bank's sudden collapse last year, according to an announcement by New York City Comptroller Brad Lander.
The investment was made in Community Stabilization Partners, a joint venture led by affordable housing providers Community Preservation Corp. and Related Fund Management. NYCERS will own a 25% stake in the partnership.
"The 35,000 rental units in the Signature portfolio could have faced grave risks as a result of the bank's collapse – preserving them is an enormous team effort, and we are proud to be part of it," Lander said. He estimated the internal rate of return of the investment to be almost 11% net of fees.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
