MetLife, State Street Strike $2B Commercial Mortgage Deal
As part of the deal, State Street affiliates and MetLife affiliates will co-lend each loan.
NEW YORK CITY—MetLife Investment Management has entered a multi-year agreement to originate and service up to $2 billion in commercial mortgage loans for Boston-based State Street Corp.
As part of the deal, State Street affiliates and MetLife affiliates will co-lend each loan. MetLife Investment Management is the institutional asset management platform for New York City-based MetLife, Inc.
MetLife Asset Management says the deal with State Street complements its commitment to grow its business across fixed income strategies and in new markets. Last year, MetLife, Inc. acquired Logan Circle Partners, L.P., a specialist in traditional fixed income strategies, in a deal valued at approximately $250 million. Earlier this year, MetLife Investments Asia Limited received its asset management license from the Securities and Futures Commission in Hong Kong.
“This is an important step in growing our real estate platform, and we look forward to partnering with State Street to provide a wider range of real estate financing options to our borrowers,” says Robert Merck, senior managing director and global head of real estate and agriculture, MetLife Investment Management.
A Typical Deal
Last month, MetLife Investment Management and Northwestern Mutual made a $450-million, 12-year fixed rate loan secured by Broadway Plaza, an open-air lifestyle retail center in Walnut Creek, CA.
Broadway Plaza, a 958,000-square-foot retail hub anchored by Nordstrom, Neiman Marcus and Macy’s, at the time of the transaction was 98% leased with sizeable new additions under development. The center is in close proximity to some of the most affluent neighborhoods in the San Francisco Bay Area.
The loan, which was made to a joint venture between The Macerich Co. and Northwestern Mutual, follows a significant redevelopment of the property.