No, the city’s main pension fund did not invest $60 million into 35,000 rent-stabilized buildings. Not directly, anyway.
Given the spin from elected officials, that wasn’t exactly clear.
Mayor Eric Adams, Comptroller Brad Lander and Public Advocate Jumaane Williams on Tuesday announced that the New York City Employees’ Retirement System was taking a 25 percent stake in a venture that bought a portion of Signature Bank’s loans backed by rental buildings, most of which are rent-stabilized.
“Today, we are proud to announce a $60 million investment from our NYCERS pension fund that will go toward preserving 35,000 units of affordable housing,” Adams said in a press release.
“Go toward” requires some breaking down:
- The money is for a stake in the venture, which includes Community Preservation Corporation, Related Fund Management and Neighborhood Restore. The venture services 5 percent of Signature Bank’s $5.8 billion rent-stabilized loan portfolio. The Federal Deposit Insurance Corp. retained 95 percent.
- The venture does not own the buildings.
- The preservation of these “rent-stabilized” apartments really kicks in when the loans are in trouble and the venture works with owners to refinance — or takes over properties and sells them.
Now, onto how the pension fund will make money, because that is something pension funds like to do.
It’s difficult to get a clear picture of that without info on the loans themselves. But Lander told me that most of the loans are performing, so the venture is collecting servicing fees and loan repayments and expects a net internal rate of return of 10.8 percent. Some mortgages will need to be reworked or will face foreclosure.
What we’re thinking about: Why did Netflix change the name of “House of Serhant” to “Owning Manhattan”? Do you plan to watch the show? Will there be catchphrases? Should I have a reality show? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: TZ Capital paid Thor Equities $180 million for the retail at the base of the Carlton House condop, Rich Bockmann reports. That’s $97 million less than the $277 million Thor paid for the property in 2013.
Elsewhere in New York…
— Mayor Eric Adams on Tuesday announced plans to create a Charter Revision Commission to float changes to the charter, subject to approval by voters in November, Politico New York reports. He appointed New York Building Congress President Carlo Scissura to chair the commission. Some City Council members saw the announcement as a reaction to their effort to gain more authority over mayoral appointments, which City Hall denies.
— Disability rights advocate Michael Carey filed a complaint against state Sen. Kevin Parker, alleging that the lawmaker (and black belt) shoved him during an argument this month at the state Capitol building, the Associated Press reports. Carey told the AP that the two subsequently “resolved things in a peaceable way.” Parker will not face charges.
— Donald Trump on Thursday will host his first campaign rally in New York in eight years, the New York Times reports. The venue will be Crotona Park in the Bronx.
Residential: The priciest residential sale Wednesday was $20.7 million for a 4,241-square-foot condominium at celebrity-laden 443 Greenwich Street in Tribeca. The unit was once briefly owned by actor Mike Myers.
Commercial: The largest commercial sale of the day was $171.4 million for the residential portion (Units 1 and 2) of 55 Suffolk Street. The combined space has roughly 248,0000 square feet, 25 percent of which is income-restricted. Blackstone bought a minority stake.
New to the Market: The highest price for a residential property hitting the market was $16.8 million for a 3,500-square-foot condominium at 988 Fifth Avenue on the Upper East Side. Richard Phan of Douglas Elliman has the listing. — Matthew Elo