Newmark Group Inc.

10/28/2024 | Press release | Distributed by Public on 10/29/2024 13:29

Newmark Advises Federal Deposit Insurance Corporation on $5.8B Loan Portfolio Sale to Community Preservation Corporation, Alongside Related Fund Management and Neighborhood Restore

October 28, 2024 9:00 AM [ii]

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 completion of a $5.8 billion sale of rent-stabilized or rent-controlled multifamily loans to Community Preservation Corporation ("CPC"), Related Fund Management ("Related") and Neighborhood Restore, a newly formed venture. The CPC secured the portfolio for $171 million for a 5% equity stake. Newmark Co-Heads of U.S. Capital MarketsDoug Harmon and Adam Spies led the dedicated team that advised the FDIC in the pair of transactions.

"Newmark is pleased to have assisted the FDIC with facilitating a deal that will further preserve affordable and equitable housing, spearheaded by a winning joint venture that has a proven track record of transforming communities for decades and is extremely well-suited to handle the massive portfolio's complex loan servicing and asset level management that will be required," said Harmon. "Our ability to effectively advise on the sale of such a sizable, complicated and sensitive portfolio while skillfully navigating all stakeholders demonstrates our experience and dedication in achieving holistic solutions. We look forward to continuing to provide insight and expertise as we move forward with the rest of our work with the FDIC."

The portfolio consists of more than 870 loans secured by over 1,100 New York City residential properties and nearly 59,000 individual units, all of which had some component of rent-controlled or rent-stabilized units. Per the terms of the transaction, the FDIC is obligated to financially and physically preserve the collateralized multifamily properties, ensuring availability and affordability for low- to moderate-income households.

Founded in 1974 in New York City, CPC is one of the country's largest Community Development Financial Institutions exclusively focused on multifamily housing in low-income areas. Having invested $14.3 billion in multifamily properties, financed 225,000 units and housed 1.1 million people, CPC believes providing affordable housing is fundamental to transforming and fostering communities nationwide.

[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 December 15, 2023.


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
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.