F
lagstar Financial, the rebranded New York Community Bank, is looking to sell a large portfolio of struggling loans backed by prominent owners in New York, including RXR and Stellar Management. The package includes eight sub-performing loans with an unpaid balance totaling $343 million. Notable loans include an $80 million debt provided to Stellar Management for its Flatiron District office building at 220 Fifth Avenue, as well as a $77 million loan given to the Olnick Organization for its office building at 130 Fifth Avenue.

    The portfolio also includes loans on two other office buildings and a pair of retail condos in Manhattan. The marketing memo notes that the properties have "challenging capital stacks," which is common among owners who must refinance loans in this high-rate environment. A representative for Olnick stated that their loan is performing well with no issues.

    Flagstar Financial has been struggling to regain its footing since nearly collapsing in March, and reported a 990% increase in loans with outsized default risk in the third quarter. The bank's CEO was replaced in February due to internal controls issues discovered during an internal loan review.