Blackstone Buys $2B CRE Loans, Doubles Down on Discounting
Strategic Acquisition Amid Financial Restructuring Blackstone has executed a significant transaction. They acquired $2 billion in performing commercial real estate (CRE) loans from Atlantic Union Bank. This strategic move underscores Blackstone's adeptness at leveraging valuation methods. It allows them to optimize investment strategies in a fluctuating market. Acquiring these loans at 90-93% of par value provides a cost-effective entry into the CRE market. This comes at a time when credit conditions are tight and delinquency rates rise. Blackstone’s acquisition aligns with their broader strategy. They aim to diversify and expand their investment portfolio in the CRE sector. Additionally, this acquisition is part of Blackstone's strategy of acquiring over $20 billion in CRE portfolios since 2023. The transaction highlights a trend of banks shedding non-core assets. Atlantic Union can strengthen its balance sheet by reducing its CRE concentration amid economic uncertainty. Blac...