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Cerberus buys $1.3 billion multifamily loan book tied to NYC rent rules
About $736 million of the portfolio is linked to rent-regulated apartments, and the seller priced the loans at roughly 92 cents on the dollar.
Cerberus Capital Management has acquired a $1.3-billion multifamily loan book with heavy exposure to rent-regulated apartments in New York City, ConnectCRE reported, citing Bloomberg News.
The seller was OceanFirst Financial Corp., which priced the loans at about 92 cents on the dollar. Roughly $736 million of the portfolio was tied to rent-regulated units, the source said.
ConnectCRE linked the deal to New York City’s regulatory environment, noting that since 2019 state legislation capped landlords’ ability to raise rents and that more recently, the Rent Guidelines Board enacted a two-year freeze on increases for tenants signing renewal leases in rent-regulated apartments.
OceanFirst inherited the loan portfolio after acquiring Flushing Financial Corp. in June, then moved to offload the assets, according to ConnectCRE. The outlet also said regional banks have looked to reduce exposure to apartment loans amid rising landlord costs and regulatory challenges.