- Blackstone Mortgage Trust originated $1.6B in new commercial real estate loans in Q1 2025, its highest level in over two years, with another $2B in deals expected to close soon.
- Capital inflows from $1.8B in loan repayments and $1B in new fundraising strengthened the firm’s liquidity, positioning it to seize opportunities during market volatility.
- The lender is focusing on multifamily, industrial, and self-storage properties, with office lending now only 21% of its portfolio, down from nearly 40%.
Blackstone Mortgage Trust is making a major push in commercial property lending as capital market volatility reshapes the investment landscape.
As reported by CoStar, the company originated $1.6B in new loans during the first quarter—the highest quarterly volume since early 2023—and expects another $2B in deals to close in the near term.
Capital Advantage
The surge in originations comes on the heels of $1.8B in loan repayments and $1B in new capital raised during the quarter. CEO Katie Keenan noted on the company’s earnings call that this proactive capital management, coupled with a strategic focus on stronger asset classes, has left Blackstone Mortgage well-positioned despite broader economic challenges tied to ongoing trade policy uncertainty.
Strategic Shift
The firm’s lending activity now heavily favors multifamily, industrial, and self-storage sectors, which together account for nearly half its portfolio. Office lending has fallen dramatically, with exposure shrinking from nearly 40% to just 21% of its holdings. Roughly 95% of Blackstone Mortgage’s portfolio is performing, a notable improvement from 88% during previous market lows.
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Recent Activity
In March, Blackstone Mortgage provided a $97M refinancing loan for the 216-unit 7600 Broadway apartments in San Antonio. The deal was part of a broader commercial mortgage-backed bond issuance that raised $1B for the firm.
Keenan said the company could return to the bond market later this year, depending on market conditions. With origination volumes growing and market volatility stabilizing, securitizations via collateralized loan obligations (CLOs) are seen as an attractive capital-raising option.
Why It Matters
Blackstone Mortgage’s aggressive posture during market uncertainty highlights how well-capitalized lenders can gain market share and capitalize on better risk-adjusted returns. As real estate values reset, firms with ready liquidity are poised to lead the next phase of market investment.
What’s Next
With a $19B loan receivable portfolio and a goal to grow it toward $20B, Blackstone Mortgage plans to continue expanding. As capital markets stabilize, expect the firm to increase both originations and bond market activity in the months ahead.
