Newmark Advises Federal Deposit Insurance Corporation on Sale of $15.4B Loan Portfolio to Goldman Sachs

October 28, 2024 [ii] 9:00 AM

Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark"), a leading commercial real estate adviser and service provider to large institutional investors, global corporations, and other owners and occupiers, announces it served as the exclusive financial advisor to the Federal Deposit Insurance Corporation ("FDIC") on the sale of a $16.8 billion commercial real estate loan portfolio. The portfolio sold to a Blackstone-led joint venture comprising Blackstone Real Estate Debt Strategies ("BREDS"), Blackstone Real Estate Income Trust, Inc. ("BREIT"), Canada Pension Plan Investment Board ("CPP Investments") and funds affiliated with Rialto Capital ("Rialto"), who acquired a 20% equity stake for $1.2 billion. Newmark Co-Heads of U.S. Capital MarketsDoug Harmon and Adam Spies led a dedicated team who advised the FDIC in the transaction.

"Newmark's robust, premiere skillset in navigating complex transactions with diligence and expertise proved invaluable in facilitating this transaction," Harmon said. "With various players involved in the sizable portfolio, the team's thoughtful execution ensured the best possible outcome for all stakeholders involved. We look forward to continuing to deliver top-level results on behalf of the FDIC."

Encompassing over 2,600 loans spanning retail, market-rate multifamily and office properties primarily in the New York City area, and with approximately 90 percent of the loans being fixed rate, the portfolio presents a strategic and diversified investment opportunity. Blackstone will lead as the asset manager of the portfolio, with Rialto Capital serving as the loan servicer and operating partner.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of June 30, 2024, Newmark's company-owned offices, together with its business partners, operate from approximately 170 offices with 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
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[i] The book value of the overall loan portfolio was approximately $60 billion when Newmark was retained as an advisor by the FDIC and approximately $53 billion when the Company began marketing the loans, while the completed transactions had a combined notional value of $39.5 billion. For more information, please see various announcements, press releases, and other information on the FDIC website, including "FDIC Announces Upcoming Sale of the Loan Portfolio from the Former Signature Bank, New York, New York", "SIGF-23 Sale Announcement $18.5 Billion All Cash Loan Sale", "SIGCRE-23 Sale Announcement $33.22 Billion Commercial Real Estate Loan Portfolio", "FDIC Signature Bank Receivership Sells 20 Percent Equity Interest in Entity Holding $9 Billion Rent-Stabilized / Rent-Controlled Multifamily Loans", "FDIC Signature Bridge Bank Receivership Sells Five Percent Equity Interest in Entities Holding $5.8 Billion of Rent-Stabilized / Rent-Controlled Multifamily Loans", and "FDIC Signature Bridge Bank Receivership Sells 20 Percent Equity Interest in Entity Holding $16.8 Billion of Commercial Real Estate Loans".
[ii] Newmark's October 28, 2024 press release is retrospective to the FDIC's published announcement on October 3, 2023.