Multifamily Loan Portfolio Sale
Commercial Observer
Connecting and informing industry leaders of trends and individuals defining the global commercial real estate landscape
Bank of America has bought an approximately $990 million multifamily loan portfolio from HomeStreet. It’s one of the largest such trades of 2024. Also for today: A ground lease for a Class A office building in Manhattan sells for a lot less than it sold for pre-pandemic.
Enjoying these stories on all things real estate? Unlock unlimited access to our content with a subscription.
— Tom Acitelli, Deputy Editor
HomeStreet to Offload $990M Multifamily Loan Portfolio to Bank of America
Financial services company HomeStreet is set to sell roughly $990 million worth of multifamily commercial real estate loans to Bank of America, the Seattle-based firm announced Friday. The price tag on the loan sale is reflective of the “current interest rate environment” as the loans being sold are “primarily lower-yielding loans with longer duration than the overall portfolio,” HomeStreet CEO Mark Mason said in a statement Friday. The deal, which is expected to close before the end of 2024, will be split into two parts. About $652 million was expected to close Friday, while about $338 million is set to close Dec. 30 or soon after. “Entering into this agreement and completing the sale of $990 million of multifamily loans is the first step in implementing a new strategic plan, which we expect to result in a return to profitability for the bank and on a consolidated basis early next year,” Mason said.
Savanna Buys Ground Lease for 430 West 15th Street From Invesco
Invesco has finally offloaded a Class A office property in Manhattan’s Meatpacking District — unsurprisingly, for a significant loss. The investment manager has been shopping for a buyer for the ground lease on 430 West 15th Street since at least June 2023 with the expectation that it would not even come close to breaking even. Invesco ultimately found a buyer in Savanna Real Estate Fund. The 100,000-square-foot property that had been converted from a parking garage was sold for $85 million, a far cry from the $150 million Invesco paid the Teachers Insurance and Annuity Association (TIAA) for the property in 2018, Traded first noted. The deal was an all-cash transaction, and the building attracted a lot of attention from potential buyers, according to a source with knowledge of the deal.
Enjoying these stories on all things real estate? Unlock unlimited access to our content with a subscription. And for a daily version of this newsletter, sign up here.