- Bayview Asset Management bought a $395M portfolio of 121 commercial loans from a Blackstone-led venture.
- The loans are backed by offices, multifamily, retail, and industrial properties, mostly in New York City.
- The sale follows Blackstone’s previous debt deals involving Morgan Stanley and Maverick Real Estate Partners.
Blackstone Pushes Ahead with Debt Sales
According to The Real Deal, Blackstone is continuing to sell off Signature Bank’s troubled real estate loans, also known as Signature debt. This time, Bayview Asset Management purchased $395M in commercial debt. The deal was made at a slight discount, as reported by Bloomberg.
What the Portfolio Includes
The sale includes 121 loans. These are backed by a mix of office, multifamily, retail, and industrial properties. Most of the assets are in New York City. Newmark marketed the debt, with a team led by Doug Harmon, Adam Spies, and Josh King.
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Previous Sales Set the Pace
This is at least the third major sale of Signature debt. Last year, Morgan Stanley acquired $700M worth. Around the same time, Maverick Real Estate Partners bought $247M in debt tied to properties in Manhattan, Brooklyn, and Queens.
How We Got Here
In December 2023, Blackstone, Rialto Capital, and the Canada Pension Plan Investment Board bought a 20% stake in Signature’s $17B loan book. Their bid of $1.2B won the deal. Meanwhile, the FDIC kept an 80% share and offered 50% financing.
Follow-Up Moves
Just a month after the purchase, the venture began marketing $1.8B in performing apartment loans. This marked the beginning of a phased sell-off strategy.
Bayview Expands Its Reach
Bayview specializes in mortgage and consumer credit investments. Last year, it renewed a 55,000 SF lease for its headquarters in Coral Gables, Florida. That was one of the largest office leases in South Florida for 2024.
More Momentum for Blackstone
Beyond debt sales, Blackstone is also attracting big institutional money. Recently, Norges Bank Investment Management committed $800M to a Blackstone fund focused on logistics. Notably, Blackstone is already the largest private investor in the sector.
Why It Matters
These sales are helping reduce exposure to distressed Signature debt. At the same time, they show how active investors are in reshaping their portfolios. As a result, the commercial real estate market continues to adjust in response to banking stress.
