Blackstone made good on its plan to slice off more of its commercial debt inherited from Signature Bank, for at least the third time.
Bayview Asset Management purchased a portfolio of loans from the Blackstone-led venture for a slight discount, Bloomberg reported. None of the parties involved in the sale commented on the deal.
The joint venture of Blackstone, Rialto Capital and the Canada Pension Plan Investment Board started marketing $395 million worth of commercial property loans in the tri-state area in March. The portfolio includes 121 loans backed by office, multifamily, retail and industrial properties, mostly in New York City.
A Newmark team led by Doug Harmon, Adam Spies and Josh King marketed the debt.
Morgan Stanley last year bought $700 million worth of loans from the trio. Also last year, distressed debt player Maverick Real Estate Partners purchased $247 million in debt, backed by eight properties, including assets in Midtown Manhattan, Brooklyn and Queens.
Blackstone Real Estate Debt Strategies, BREIT, Rialto Capital and Canada Pension Plan Investment Board landed a 20 percent stake in a venture holding Signature’s $17 billion commercial real estate loan book with a winning bid of $1.2 billion in December 2023. The FDIC kept an 80 percent interest and provided financing equal to 50 percent of the venture’s value.
Only a month later, the venture began shopping around $1.8 billion in performing loans, primarily backed by apartment buildings.
Bayview is an investment manager that focuses on mortgage and consumer credit. Last year, it renewed its lease for 55,000 square feet for its headquarters in Coral Gables, Florida, representing one of the year’s largest office leases in South Florida.
The loan sale wasn’t the only big move for Blackstone in recent days. Norges Bank Investment Management, Norway’s sovereign wealth fund, committed $800 million to a Blackstone fund that invests in warehouses and logistics properties, Bloomberg reported; Blackstone is the largest private investor in the sector.
— Holden Walter-Warner