- Invesco Commercial Real Estate Finance Trust (INCREF) has completed its first-ever $1.2B commercial real estate collateralized loan obligation (CRE CLO), named INCREF 2025-FL1.
- The transaction, managed by Morgan Stanley with Barclays, Citigroup, and Wells Fargo as bookrunners, is the largest diversified CRE CLO issued in the US in the past three years.
- The CLO is backed by a portfolio composed of 55% multifamily and 45% industrial loans, focused in high-growth “Smile States” from California to the Carolinas.
A New Chapter
Invesco Commercial Real Estate Finance Trust (INCREF), a REIT that launched in May 2023, has made its first move into the CRE CLO space.
According to the Commercial Observer, the company closed a $1.2B deal called INCREF 2025-FL1. This pool includes floating-rate loans for multifamily and industrial properties.
Built On Strategy And Strength
Morgan Stanley led the structure of the deal, with Barclays, Citigroup, and Wells Fargo also playing key roles. According to CEO Bert Crouch, the CRE CLO reflects Invesco’s focus on smart lending and strong market knowledge. He noted that the company has stayed ahead by adapting through different real estate cycles.
Despite market turmoil in April — especially during “Liberation Day” — INCREF still priced the CLO by the end of the month. That showed strong demand from investors.
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Inside The Deal
President Charlie Rose added that the REIT’s lending approach focuses on quality over chasing higher returns, which proved essential in this CRE CLO execution. The portfolio covers fast-growing regions and went through both market-level and property-level checks. It includes 55% multifamily and 45% industrial loans.
President Charlie Rose added that the REIT’s lending approach focuses on quality over chasing higher returns. Since launching, INCREF has already originated $2.8B in loans across 22 deals.
Why It Matters
The deal came at a time of high uncertainty. Yet, INCREF still attracted strong interest from buyers. This shows that well-managed CLOs tied to strong properties can still do well, even in tough markets.
What’s Next
With this deal now closed, INCREF looks ready to grow even more. Its success here sets the stage for future CLOs. Invesco’s track record and focus on key sectors should help it stay active and competitive in the market.
