- A joint venture including Blackstone, Canada Pension Plan Investment Board (CPPIB), and Rialto Capital is selling a portfolio of 121 performing loans.
- The loans are secured by office, apartment, retail, and industrial properties, primarily in New York City, but also extending to the broader tri-state area.
- The group’s sale of these assets is part of its ongoing strategy to divest some of the debt acquired from Signature Bank, which failed in 2023.
- Newmark Group Inc. is handling the marketing of the debt, with initial bids due by March 25.
Blackstone (BX), in partnership with Canada Pension Plan Investment Board and Rialto Capital, is looking to offload $395M in real estate loans tied to properties in New York City and the tri-state area.
These loans, purchased as part of Blackstone’s acquisition of Signature Bank’s debt in 2023, are part of a broader strategy to divest non-core assets, as reported by Bloomberg.
Strategic Divestment
The venture’s decision to sell the $395M portfolio is its latest move in a series of debt sales since Blackstone and its partners purchased a 20% stake in a JV that acquired roughly $17B of loans from the failed Signature Bank.
The loans included in this sale are a mix of performing assets, including those backed by office buildings, apartments, and various commercial properties, with a notable concentration in NYC.
This sale follows a similar move last year when Morgan Stanley (MS) acquired $700M worth of Signature Bank’s loans. Another portion of the debt was bought by Maverick Real Estate Partners.
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Dynamics of Debt
The Big Apple has long been one of the most lucrative and competitive real estate markets in the world, with commercial property debt in high demand.
The city’s CRE sector has faced many challenges, including rising interest rates, evolving tenant demands, and ongoing office uncertainty. These factors could influence the eventual success of the loan sale.
Looking Ahead
The upcoming sale of these loans, with initial bids due on March 25, will be a key indicator of investor sentiment toward the New York real estate market.
As Blackstone and its partners continue to divest from Signature Bank’s assets, it remains to be seen how much interest the portfolio generates and whether it reflects broader trends in the commercial property market.
Given the high demand for real estate debt in the New York area, investors are expected to show keen interest, although the terms and pricing will depend on broader economic conditions.
