- Blackstone secured a $435M interest-only, floating-rate CMBS loan and $30M in mezzanine debt, with the CMBS loan featuring a two-year term and up to three one-year extensions.rn
- The five-property multifamily portfolio spans Massachusetts, Florida, and Georgia, totaling 1,717 units and 92% occupancy. Over $44M in capital improvements have been made since 2020.rn
- Proceeds will retire $386.2M in existing debt, cover a $79.6M mezzanine loan, and pay $6.4M in closing costs.rn
- This is Blackstone’s second major CMBS deal in two weeks, as the market sees a post-GFC high in issuance—despite rising delinquency rates, especially in office-backed loans.rn
Blackstone Ramps Up Multifamily Financing
Investment giant Blackstone is finalizing a $465M refinancing deal backed by a five-property multifamily portfolio, reports Bisnow. The move is part of its ongoing, aggressive push in the commercial mortgage-backed securities (CMBS) market.
Loan Breakdown
The financing package includes a $435M floating-rate CMBS loan and $30M in mezzanine debt. The CMBS component is interest-only and structured with an initial two-year term and three one-year extension options, according to Fitch Ratings.
The deal, which is expected to close by October 15, is being jointly originated by Morgan Stanley and Natixis. Additionally, KeyBank is serving as the special servicer.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Inside The Portfolio
The loan is backed by a 1,717-unit multifamily portfolio spread across Massachusetts, Florida, and Georgia. Blackstone has invested $44.6M in capital improvements since acquiring the properties between 2019 and 2021. The portfolio is currently 92% leased.
- Massachusetts property: 528 units, receives 56% of the loan proceeds
- Florida assets (3): Collectively get 35.4%
- Georgia property: Receives the remaining 8.5%
The portfolio, moreover, uses a cross-collateralized and cross-defaulted structure—a strategy commonly employed to strengthen credit quality and, in turn, reduce risk in securitized deals.
Use Of Proceeds
Along with a $7.7M equity contribution, Blackstone will use the funds to:
- Pay off $386.2M in existing debt
- Retire a $79.6M mezzanine loan
- Cover $6.4M in closing costs
Continued CMBS Activity
This refinancing follows another major CMBS deal Blackstone closed just a week earlier. The firm partnered with Starwood Capital on a $1.9B refinance of 220 extended-stay hotels across 33 states.
The CMBS market is experiencing a resurgence in issuance, even as distress in some sectors mounts. Lenders issued nearly $59B in CMBS loans during the first half of 2025, setting a record for the post-Global Financial Crisis era. However, challenges remain: as of August, office-backed CMBS loans saw a record-high delinquency rate of 11.7%.
Why It Matters
Blackstone’s continued activity, therefore, signals sustained institutional appetite for multifamily exposure, even as other cre sectors face headwinds. Meanwhile, as cmbs issuance increases, sponsors are increasingly capitalizing on floating-rate, short-term debt to navigate shifting market conditions. This strategy helps them navigate uncertain market conditions, particularly in more resilient sectors like multifamily housing.
What’s Next
As CMBS issuance continues to rise and market volatility persists, high-profile refinancings and recapitalizations are becoming increasingly likely. In response, institutional players like Blackstone are not only staying active but also proactively resetting loan terms in order to stay ahead of potential interest rate shifts or planned property exits.
