First Internet Bancorp announced a milestone agreement to sell up to $869 million in performing single tenant lease financing loans to Blackstone Real Estate Debt Strategies, a move that signals both a strategic shift for the bank and underscores Blackstone’s rising influence in the net lease sector. First Internet Bank will continue servicing all sold loans, maintaining its borrower relationships even as the assets transition to Blackstone’s portfolio.
The deal, set to close around September 18, 2025, values the loans at approximately 95% of their unpaid principal balances, accounting for transaction costs. As part of the sale, First Internet Bancorp anticipates a net boost in regulatory capital ratios and intends to move around $550 million of deposit balances off its books.
David Becker, First Internet Bancorp’s chairman and CEO, described the agreement as a major step toward strengthening the bank’s capital base and enhancing its overall financial performance. Shedding fixed-rate, lower-coupon assets is expected to make earnings more resilient regardless of interest rate shifts and better position the company for expansion in the coming years.
For Blackstone, the transaction fits squarely within a broader net lease strategy that complements its floating-rate lending activities. By adding long-duration, fixed-income streams through net lease investments, Blackstone can diversify holdings, reduce portfolio risk, and tap steady growth in sectors with built-in rent escalators—key attributes for both stability and performance amid inflationary pressures. Recent data show net lease assets now make up about 5% of Blackstone’s massive real estate portfolio, alongside major allocations to multifamily, industrial, and data center properties.
Blackstone’s market position empowers it to pursue large net lease transactions, drawing on institutional capital and a global platform to access opportunities across asset types and geographies. The firm targets acquisition cap rates in the 7–8% range with lease terms spanning 15–20 years, leveraging these characteristics to secure value over the long run. Past deals highlight Blackstone’s scalability, with high-profile acquisitions of net-leased casino properties and corporate headquarters, as well as a continued expansion in logistics and retail assets.
Blackstone Real Estate Debt Strategies deployed $38 billion from January 2024 through June 2025. The sector’s overall market is worth trillions, and Blackstone’s ability to innovate and scale its net lease strategy has made the company a reference point for institutional investors seeking predictable income streams, mitigated risks, and resilience to market change.
Piper Sandler Loan Strategies served as introducing broker for First Internet Bancorp, while legal advisers for Blackstone included Gibson, Dunn & Crutcher LLP and Ballard Spahr LLP. Supplemental details about the transaction were filed with the Securities and Exchange Commission.
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