Bank failures expose risks ‘more significant than managers thought’

SVB and Signature, along with troubled bank First Republic, had been major sources of financing for many real estate managers.

The collapse of three US regional banks – two of which were active lenders to private real estate managers – in less than a week underscores the myriad risks the industry is now facing, market sources told affiliate title PERE.

On Friday, Silicon Valley Bank was shut down and taken over by the Federal Deposit Insurance Corporation in the second-biggest bank failure in US history.