Washington Federal Bank, or WaFd Bank, the wholly owned subsidiary of WaFd, Inc. has closed on the sale of approximately $2.8 billion of multifamily commercial real estate loans to Bank of America, which in turn is selling the loans to funds managed by Pacific Investment Management Company.

According to a regulatory filing by parent company WaFd, the 2,000 multifamily loans have a current unpaid principal balance of $3.2 billion and the sale is being facilitated in a bid by the regional lender to scale down its exposure to the commercial real estate sector.

Little else was said at the time of the regulatory filing but with the deal now closed WaFd Bank is commenting on the sale, which it says represents the largest non-FDIC assisted CRE loan sale ever to its knowledge. It also noted that the sale of the multi-family loans was executed at no loss to WaFd.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.