JP Morgan Stanley is set to purchase a $700 million signature real estate loan from Blackstone
Morgan Stanley is set to purchase approximately $700 million in signature bank real estate loans from companies like Blackstone. This transaction has piqued investors' interest as the sale of signature bank real estate loans provides a clearer understanding of the value of the properties and their debts in a sluggish commercial real estate transaction market
According to informed sources, Morgan Stanley (MS.US) has reached an agreement to acquire approximately $700 million in real estate loans from Signature Bank (SBNY.US) in bankruptcy, from groups such as Blackstone (BX.US), Canada Pension Plan Investment Board, and Rialto Capital. The sources said that Cushman & Wakefield is the advisor for this sale.
Last year, Blackstone and its partners acquired a stake in a joint venture established with the Federal Deposit Insurance Corporation (FDIC) holding around $17 billion in Signature Bank real estate loans. The two companies later considered selling part of the investment portfolio, with a focus on selling around $1.8 billion in loans backed by apartments. It is currently unclear how the other parts of these loans will be handled.
Amid a sluggish commercial real estate transaction market, the sale of Signature Bank real estate loans has attracted investor interest. Landlords and lenders are grappling with higher borrowing costs and plummeting valuations, and rare transactions in the market, such as the sale of Signature Bank loans, are shedding light on the exact value of some properties and their debts
