Cerberus Acquires Multifamily Loan Book with Heavy Rent-Regulated Exposure
Cerberus Capital Management has acquired a $1.3-billion loan book with heavy exposure to rent-regulated apartments in New York City, Bloomberg News reported. The seller was OceanFirst Financial Corp., which priced the loans at about 92 cents on the dollar.
With about $736 million of the $1.3-billion portfolio tied to rent-regulated units, the Cerberus acquisition represents one of the largest loan sales in New York’s rent-stabilized sector since 2019 state legislation capped the ability of landlords to raise rents. More recently, the Rent Guidelines Board under New York City Mayor Zohran Mamdani enacted a two-year freeze on increases for tenants signing renewal leases in rent-regulated apartments.
OceanFirst inherited the apartment loan portfolio with its acquisition of Flushing Financial Corp. in June, then moved quickly to offload the loan book, reported Bloomberg. Regional banks have sought to reduce their exposure to risky apartment loans in view of rising landlord costs and regulatory challenges.
Where the apartment industry connects. Meet the owners, investors, developers, lenders, brokers, and service providers driving today’s multifamily market at Connect Apartments. Build relationships, uncover opportunities, and stay ahead of what’s next.
Other News
JLL Arranges Financing for Lightstone Acquisition on Upper West Side
JLL Capital Markets arranged acquisition financing for Lightstone’s purchase of 323 W. 96th St., a 174-unit multifamily property on Manhattan’s Upper West Side. Senior managing director Peter Rotchford and managing director Michael Shmuely worked on behalf of Lightstone to secure the financing from MF1, a wholly owned subsidiary of Berkshire Residential Investments. Lightstone is acquiring...
Learn more
National City Investment Group Commences Workforce Housing Build
The National City Investment Group, a locally owned, privately held real estate investment company, recently broke ground on Market View, a 120-unit multifamily residential community located at 303 Highland Ave. in National City. The development will transform an underutilized parking lot adjacent to Manolo Farmers Market, which has served National City for more than 33...
Learn more
Levin Johnston Closes Apartment Sale in One of San Jose’s Strongest Submarkets
Levin Johnston of Marcus & Millichap recently completed the sale of First Street Manor, a 39-unit apartment community in San Jose. Executive managing directors Adam Levin and Robert Johnston, along with senior director, investments Cole Simpson, represented the seller and procured the buyer in the $9.112-million transaction. The Levin Johnston team demonstrated the asset’s upside...
Learn more
Brokers
View All-
Remax Real Estate Professionals
Re/Max Real Estate Professionals
-
Jared Ennis
Central CA Commercial | California
-
Rick Recckio
Recckio Real Estate & Development
-
Greg Corbin
Northgate Real Estate Group
Lenders
View AllManagement
View All-
Essex Property Trust, Inc.
California
-
Josh A
California
-
Bob Tuteur
-
Andrew Schildcrout