New York City Employees’ Retirement System Investment

New York City Employees’ Retirement System

The New York City Employees’ Retirement System invested $60 million to join Community Stabilization Partners, a venture with Community Preservation Corporation, Related Fund Management, and Neighborhood Restore. This partnership bought a 5 percent stake in Signature Bank’s $5.8 billion rent-stabilized loan portfolio, with the FDIC retaining 95 percent. The investment aims to preserve nearly 35,000 rent-stabilized apartments, although the $60 million won’t directly fund repairs. Instead, the venture has leverage over borrowers for loan servicing and refinancing terms. The investment targets a 10.8 percent return, with most loans performing, generating servicing fees. The FDIC supports the partnership with a significant de-risking element.

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