Flagstar Bank Accepts $4.8M Loss to Exit Performing Brooklyn Rent-Stabilized Loan

Flagstar Bank offloads a performing Brooklyn rent-stabilized portfolio loan to Alma Realty at a $4.8M loss, signaling an aggressive push to reduce NYC regulatory exposure.

By: AXL Media

Published: Apr 28, 2026, 10:07 AM EDT

Source: Bisnow

The Refinancing and Portfolio Breakdown

Alma Realty secured an $83 million replacement loan from Zions Bancorp to facilitate the exit. The portfolio is anchored by the 159-unit apartment complex at 545 Prospect Place in Crown Heights a former nurse training center and Jewish Hospital. The new debt has been structured into three pari passu notes, with $533.6 million of the total being bundled into a Barclays-sponsored CMBS deal.

The portfolio includes:

545 Prospect Place: 159 units (Crown Heights)

480 St. Marks Ave: 71 units

500 St. Marks Ave: 65 units