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CRE Securitized Debt Update

Private-Label CMBS and CRE CLOs

1. BX 2025-VLT7, a $1.5 billion SASB backed by a floating-rate loan for Blackstone’s QTS to refinance two new, single-tenant data centers in Atlanta and Sandston, VA. The loan will have a term of two years, with three one-year extension options prior to the Anticipated Repayment Date, followed by two additional one-year options.
2. BBCMS 2025-C35, a $795.3 million conduit backed by 33 10-year loans secured by 80 properties from Barclays, UBS, DB, JPM, Starwood, SocGen, Goldman, BofA, and LMF Commercial.
3. WFCM 2025-5C5, a $596 million conduit backed by 32 five-year loans secured by 46 properties from Wells, Argentic, Citi, UBS, BMO, Greystone, Zions, Benefit Street, and Natixis.
4. WFCM 2025-AGLN, a $300 million SASB backed by a floating-rate, five-year loan (at full extension) for Agellan, a subsidiary of Almadev, on 28 industrial properties and one office property totaling 4.2 million sf in seven states.

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totaled $82 billion, representing a 63% increase from the $50.4 billion recorded for the same period in 2024. 

Spreads Hold Steady

• Conduit AAA and A-S spreads were unchanged at +85 and +115. YTD, they are both wider by 10 bps.
• Conduit AA spreads were unchanged at +160 while A spreads were tighter by 5 bps to +200. YTD, they are wider by 25 bps and 35 bps, respectively.
• Conduit BBB- spreads were tighter by 15 bps to +500. YTD, they are wider by 75 bps.
• SASB AAA spreads were tighter by 1 - 2 bps to a range of +105 to +134, depending on property type.
• CRE CLO AAA and BBB- spreads were unchanged at +135-140 and +375, respectively.

Agency CMBS

• Agency issuance totaled $2.7 billion last week, comprising $1.4 billion of Freddie K, ML, and Multi-PC transactions, $841 million of Fannie DUS, and $450.7 million of Ginnie transactions.
• Agency issuance for the year totaled $71 billion, 35% higher than the $52.5 billion for the same period last year.

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CREFC’s Lisa Pendergast Named to PERE’s List of 100 Most Influential

July 15, 2025

CRE Finance Council President and CEO Lisa Pendergast was included in PERE’s 100 Most Influential, a list of finance industry participants who made the biggest mark on institutional private real estate capital markets in the past decade. 

Why it matters: The list of leaders in finance includes Fed Chair Jerome Powell, former Fed Chair and U.S. Secretary of the Treasury Janet Yellen, and Blackstone President and CEO Jonathan Gray.

PERE unveiled its list of 100 influential industry participants on June 30. 

What is it: PERE 100 Most Influential highlights the contributions of industry participants considered to have had the greatest influence on the direction of real estate capital markets from 2016 to 2025. The list of influential industry leaders is part of the publication’s celebration of its 20th anniversary.

In its acknowledgement of Ms. Pendergast’s work, PERE highlighted her leadership of the CRE Finance Council and critical role in transitioning it from a mostly commercial mortgage-backed securities and alternative-lender focused industry group to one that encompasses a wide range of debt providers and investors. 

PERE specifically recognized Ms. Pendergast’s efforts to increase educational programming for the industry association’s members and her work to make the CRE finance industry more inclusive with initiatives such as CREFC’s Women’s Network.

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ICYMI: Trump Signs One Big Beautiful Bill Act

July 15, 2025

The Republican reconciliation legislation — One Big Beautiful Bill Act (OBBBA) — passed the Senate 51-50 (with Vice President Vance breaking the tie) and the House 218-214. President Donald Trump signed it into law on July 4th.

• SALT: The law largely preserves the $40,000 deduction for those making under $500,000 in House language. Notably, after five years, it permanently reverts to a $10,000 deduction. It also removed the House prohibition that would have limited state workarounds for certain pass-through entities.
• Energy Tax Credits: The treatment of many energy-related tax credits remained one of the stickiest issues for lawmakers. While the delicate balance struck ensured passage, jockeying will continue as Treasury implements rulemaking and members of the Freedom Caucus seek to codify some of the side agreements purportedly struck in the early morning hours.
  
• Medicaid and Overall Spending: The changes to Medicaid are the primary driver of budget savings, but deficit hawks complained the cuts are not deep enough, while some moderates were concerned the cuts go too far. Sen. Tillis’s main objection to the bill was that too many people would lose health insurance. Murkowski and Collins were also concerned about the Medicaid provisions.

• Section 899: The retaliatory tax on foreign entities was removed from the bill during Senate consideration.
• 199A Passthrough: The qualified business income deduction remains at 20% and was made permanent.
• Low-Income Housing Tax Credit (LIHTC) Boost: The law permanently increases the state housing credit ceiling by 12.5% and lowers the tax-exempt bond requirements, similar to the 2024 Wyden-Smith Bill.
• Renews Opportunity Zones: The program was made permanent with periodically-updated zone designations, starting on Jan. 1, 2027, and ending on Dec. 31, 2033.
• Bonus Depreciation Made Permanent: Allows full expensing of qualifying property.
  
• Interest Expense Deduction: Increases the cap on the deductibility of business interest expense under 163(j) for taxable years beginning after 2024 and before 2030 by allowing the EBITDA definition of taxable income.
  • Note that the 2017 TCJA law allows real property trade or business to elect not to be subject to the cap, but they must be depreciated using the alternative depreciation system.
• Immediate Factory Expensing: The qualified production property allows full, immediate expensing for certain manufacturing buildings with construction beginning in 2025 through 2029 and placed into service.
  • The legislation limits the deduction to owner-occupied facilities that manufacture, produce, or refine any tangible personal property.
  • Office space associated with the facility is explicitly excluded from the definition. It also excludes leased facilities.

• No 899 Retaliatory Tax: CREFC and other organizations pushed back against the provision, which was removed, that could have had a chilling impact on foreign investment into the U.S.
• No Business SALT Cap: There are no provisions to cap business state and local income or property taxes.
• No Carried Interest Rollback: President Trump had reiterated his push to close this “loophole” in a call last week with Speaker Mike Johnson (R-LA). However, the OBBBA does not change carried interest treatment.

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