Inside the bidding war for Signature’s loans; Mapping brokerage lawsuits across US ... and more

The best national real estate stories from The Real Deal. Nov 25, 2023 [View in Browser]( | [$1 for 1 Month]( [The Real Deal Logo](   [The National Logo](   In today’s newsletter, we take a look [inside the battle]( for Signature’s real estate loans. Plus, a [blacklisted developer points fingers]( at a rival, a rent-stabilized building [sets a standard for the market](, and TRD maps the [host of antitrust lawsuits]( tied to broker commissions across the country. These and more stories below.   [Inside the bidding war for Signature’s loans]( The bidding war for Signature Bank’s commercial real estate loans has become a focus of the industry after the bidding closed last week. News broke earlier in the week that [Blackstone was in the lead]( to win the $17 billion in commercial loans tied to retail, office and industrial properties. Starwood and Brookfield were also in the mix to potentially secure the loans. But, as the industry’s biggest names looked prepared to fight over one loan book, rumors broke out that the failed bank’s $15 billion rent-stabilized portfolio [failed to garner much interest]( at all. The truth, it turns out, has been quite different. Related has emerged as the frontrunner to secure a stake in the debt, though the FDIC hasn’t notified any firm of its selection. The process is clouded by some conflicting directives for the FDIC. The government-run firm is aiming for the highest price, but it’s also looking for a buyer most likely to preserve affordable housing for low-income tenants. Related's bid, though less than 70 cents on the dollar, is backed by decades of experience in affordable housing. It also has experience working with nonprofits that focus on preserving affordable housing. However, competing bids from Brookfield, Tredway, Brooksville Company, Skylight Real Estate Partners, and Rithm Capital have offered over 80 cents on the dollar, introducing a challenging decision for the FDIC. The competing offers may force the FDIC to field a second round of bidding. While the winners and losers could be notified over the coming weeks, the FDIC won’t formally name winners until Dec. 21.   Together with Masterworks Billionaires wanted it, but these investors got it first [Capital Funding Group]( When incredibly rare and valuable assets come up for sale, it's typically the wealthiest people that end up taking home an amazing investment. But not always… One platform is taking on the billionaires at their own game, buying up and fractionalizing some of history’s most prized blue-chip artworks for its investors. In just the last few years, its investors have realized annualized net [returns of 17.8%, 21.5%, 35%]( and more from these opportunities. It's called Masterworks. Their nearly $1 billion collection includes works by greats like [Banksy, Picasso, and Basquiat](, all of which are collectively owned by everyday investors. When Masterworks sells a painting – like the 16 it's already sold – investors reap their portion of the profits. It's easy to get started but offerings can sell out in minutes. However, as a trusted partner, The National readers can [skip the waitlist to join with this exclusive link.]( Investing involves risk and past performance is not indicative of future returns. See important Reg A disclosures and aggregate advisory performance masterworks.com/cd   [I'm an image]( [Map: Tracking brokerage lawsuits, industry changes across US]( A wave of lawsuits and rule changes are increasing pressure on the residential brokerage business, with over half a dozen suits filed alleging collusion to raise commission costs across the country. The wave began mere minutes after a jury ruled that NAR, Keller Williams, and HomeServices of America were liable for $1.8 billion in damages over commission costs. [I'm an image]( [“Bellwether” rent-stabilized deal trades at 26% discount]( The sale of a rent-stabilized building in New York was expected to help the industry rediscover the value of the asset class. Now, the results are in. The building traded for $10.2 million, a 26-percent discount from the ask. [I'm an image]( [Developer says Arbor Realty affiliate put it on Fannie Mae blacklist]( Developer Tzadik Management was recently blacklisted by Fannie Mae. But the firm’s management has fired back, saying that an Arbor Realty Trust affiliate spread false information about its financial health to Fannie Mae, resulting in the ban.   Advertisement   [I'm an image]( [Brand Studio The Mondrian Lifestyle Comes to Tulum]( [I'm an image]( [Elie Schwartz’s Nightingale defaults on $30M loan in Midtown: lender]( Add a $30 million default to the long list of Elie Schwartz’s troubles this year. The firm could lose a Midtown office building after the lender called for the property to immediately be taken over by a receiver as the foreclosure process begins. [I'm an image]( [LA City Councilwoman acknowledges bait-and-switch on transfer tax]( Los Angeles Councilwoman Nithya Raman admitted that the Measure ULA transfer tax was able to pass, in part, because of bait-and-switch by the city’s politicians. The tax, which targets all property sales over $5 million, was marketed as a tax on luxury homes. [I'm an image]( [Here’s what’s behind November’s mini-rush of luxury home sales]( It’s been a slow year for luxury housing throughout the country. But Chicago’s market has seen a slight boost in recent weeks, marked by a handful of $4 million sales this month. [I'm an image]( [Brand Studio Miles Nadal on Thriving in Real Estate Through Partnership and Adaptability]( [I'm an image]( [Multifamily goes from darling to distress in Texas]( Texas multifamily has gone from hero to zero. In years past, strong rent growth and migration trends made the state look like the perfect place for multifamily investment. But the market’s dynamics have taken a turn for the worse, and some investors have found themselves in trouble. [I'm an image]( [Rialto Capital falls behind on $60M loan tied to San Mateo office tower]( Rialto Capital has fallen behind on a $59.9 million loan linked to the Tower Plaza office building in San Mateo. Trepp reported that the investment firm is 30 days behind on a payment for the 130,000-square-foot tower.     [The Real Deal Logo]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2023 TheRealDeal. All rights reserved. [View Online](