A joint venture involving Blackstone, the Canada Pension Plan Investment Board, and Rialto Capital is moving forward with plans to sell a significant portion of its real estate loan portfolio, valued at approximately $395 million, as reported by Bloomberg.
This would include 121 performing loans, which are secured by a diverse range of properties including multifamily residences, offices, retail spaces, and industrial facilities. The majority of these properties are located in New York City, with some situated in the broader Tri-state area.
The marketing of this debt is being handled by Newmark Group, with initial bids set to be received by March 25. This sale is part of a larger strategy by the joint venture to offload some of the commercial real estate loans it acquired from Signature Bank in December 2023. At that time, the venture purchased a 20% stake in a nearly $17 billion portfolio of former Signature Bank loans, which were predominantly performing and secured by retail, multifamily, and office properties.
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The full portfolio of commercial real estate loans from Signature Bank was initially valued at $33 billion following the bank's collapse early in 2023. The majority of the debt was secured by multifamily properties, particularly those with rent-stabilized or rent-controlled units, primarily located in New York City. Since acquiring the stake, the joint venture has been actively seeking to sell portions of the portfolio. Notably, Morgan Stanley purchased $700 million of these loans last year, while Maverick Real Estate Partners also acquired a selection.
This strategic move by the joint venture aligns with Blackstone's broader real estate debt strategies, which have been bolstered by recent successes, including the final close of an $8 billion real estate debt fund. The duo's decision to sell these loans reflects a trend in the commercial real estate market, where investors are continually reassessing their portfolios in response to changing economic conditions.
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