CRE Securitized Debt Update
June 30, 2026
Private-Label CMBS and CRE CLOs
Two transactions totaling $2.1 billion priced last week:
- BANK5 2026-5YR23, a $1.174 billion conduit backed by 33 fixed-rate, five-year loans secured by 167 properties. Using Fitch's classification, the largest property types are office (32.5%), multifamily (16.3%), retail (12%), industrial (11%), hotel (9.3%) and manufactured housing (8.2%); top states are California (25.4%), New York (18.8%) and Texas (12.2%). The largest loan is the Mountain Industrial Portfolio, a $90 million trust portion of a $1.62 billion loan to Industrial Logistics Properties Trust on 90 industrial properties – the only loan in the pool with a standalone investment-grade credit opinion (Fitch 'A-sf'). Morgan Stanley, JPMorgan, Bank of America and Wells Fargo were the loan sellers.
- DWIGHT 2026-FL2, a $910 million managed CRE CLO sponsored by Dwight Mortgage Trust. The pool is backed by 24 floating-rate loans secured by 24 all-multifamily properties – $858.6 million funded at closing plus $51.4 million of ramp-up collateral – with a 30-month reinvestment period and 120-day ramp-up. Fitch classifies the collateral as 98.1% multifamily and 1.9% student housing; top states are New York (27.4%), California (16.5%), New Jersey (10.8%), Florida (9.5%) and South Carolina (8.7%). The five largest loans – Line and Low, 261 and 315 Grand Concourse, Sereno, Seventeen Hundred and Redlands Lawn and Tennis Club – account for 40.8% of the pool.
By the numbers: YTD 2026 private-label CMBS and CRE CLO issuance totaled $94.4 billion, up 23% from the $76.6 billion for the same period last year.
Spreads Hold Steady
- Conduit AAA and A-S spreads were unchanged at +70 and +100, respectively.
- Conduit AA and A spreads were unchanged at +130 and +175, respectively.
- Conduit BBB- spreads were unchanged at +415.
- SASB AAA spreads were unchanged in a range of +85 to +170, depending on property type.
- CRE CLO AAA and BBB- spreads were unchanged at +130/+135 (static/managed) and +300 (static/managed), respectively.
Agency CMBS
- Agency issuance totaled $1.9 billion last week, comprising a $965.4 million Freddie K transaction, $526.1 million in Fannie DUS, $400.1 million in Ginnie transactions, and $31.8 million in Freddie Multi-PC transactions.
- Agency issuance for YTD 2026 totaled $84.7 billion, 27% higher than the $66.6 billion recorded for the same period in 2025.