Flagstar Bank, one of the largest U.S. regional banks, has opened a private client office on the traditional corporate headquarters corridor of Park Avenue in New York.
The move comes as Park Avenue, housing a slew of other banks and investment firms, has led New York in its office market rebound. Flagstar is the rebranded combined entity that previously operated as New York Community Bancorp and acquired most of the deposits and retail branches of failed Signature Bank.
Flagstar, based in Hicksville, New York, is expanding its business with affluent and high-net-worth individuals and family offices while cutting its exposure to commercial real estate lending. A study from consultant Oliver Wyman projected private client business to be a key wealth management trend this year, and "upper affluent and core high-net-worth clients are becoming the new center of gravity for both volume and margins."
The bank opened a two-floor office spanning about 20,900 square feet at 320 Park Ave., at the corner of 51st Street, Flagstar said Monday in a statement. The space, designed by Gensler, includes a boardroom, client conference center and private meeting suites. It will allow 28 bankers there to "engage in focused, high-touch interactions,” Flagstar said.
Flagstar recently opened a private client office in Palm Beach, Florida, with another one opening soon in San Francisco, Lou Lagno, its head of private client offices, said in the statement.
Higher interest rates and deteriorating performance in rent‑stabilized multifamily properties, a key part of the Flagstar’s historic loan portfolio, have contributed to losses in recent years.
New York Community Bancorp completed an acquisition of Michigan’s Flagstar Bancorp in December 2022. It then bought Signature Bank’s assets in March 2023 after a run on deposits caused it to fail. Signature had been one of New York’s largest real estate lenders. Flagstar eventually became the new corporate entity.
Flagstar previously signed a lease spanning about 60,000 square feet at 320 Park that CoStar data shows doesn’t expire until 2035. A spokesperson didn’t immediately respond to a CoStar News request seeking clarification on what happened to the rest of the space after the creation of the private bank office.