CRE Securitized Debt Update
March 31, 2026
Private-Label CMBS and CRE CLOs
Six transactions totaling $4.9 billion priced last week:
- BX 2026-ALOHA, a $1.24 billion SASB backed by a floating-rate, interest-only loan for Blackstone and its partners, DivcoWest and MW Group, to help finance the $2.3 billion take-private acquisition of Alexander & Baldwin (NYSE: ALEX), a Hawaii-based commercial property REIT. The collateral comprises 37 properties totaling 3.8 million square feet across four Hawaiian islands, including 20 retail assets (75.6%), 15 industrial assets (22.3%), and two office properties (2.1%). The loan has a two-year initial term plus three one-year extension options.
- BSPRT 2026-FL13, an $880.4 million CRE CLO sponsored by Benefit Street Partners through Franklin BSP Realty Trust. The managed transaction's initial collateral pool comprises three whole loans and 41 loan participations secured by 90 properties across 17 states. The pool's top three property types are multifamily (83.8%), healthcare (7.3%), and industrial (7.1%).
- BX 2026-RISE, an $845.2 million SASB backed by a floating-rate, interest-only loan for Blackstone and Cortland to refinance 12 garden-style multifamily properties totaling 4,922 units across six states. The loan has a two-year initial term plus three one-year extension options.
- BANK5 2026-5YR21, an $836.7 million conduit backed by 31 five-year loans secured by 64 properties across 19 states from JPMorgan, BofA, Wells, and Morgan Stanley.
- WFCM 2026-C66, a $586.4 million conduit backed by 29 ten-year loans secured by 49 properties across 21 states from a group of 10 lenders led by Wells.
- PCY 2026-FCMT, a $465 million SASB backed by a fixed-rate, five-year loan for Simon Property and Institutional Mall Investors to refinance the Fashion Centre at Pentagon City and Metro Tower, a mixed-use development in Arlington, VA. The collateral includes a 647,000 square foot portion of the 866,000 square foot super-regional mall, a 168,000 square foot office building, and a ground lease beneath the 366-room Ritz-Carlton Pentagon City hotel.
By the numbers: YTD 2026 private-label CMBS and CRE CLO issuance totaled $47.4 billion, up 6% from the $44.5 billion for same-period 2025.
Spreads Hold Steady
- Conduit AAA and A-S spreads were unchanged at +80 and +105, respectively.
- Conduit AA and A spreads were unchanged at +145 and +205, respectively.
- Conduit BBB- spreads were unchanged at +450.
- SASB AAA spreads were up 4 bps across all property types, to a range of +115 to +184.
- CRE CLO AAA and BBB- spreads were unchanged at +145/+150 (static/managed) and +350/+360 (static/managed), respectively.
Agency CMBS
- Agency issuance totaled $2.2 billion last week, comprising a $1.3 billion Freddie K transaction, $576.1 million in Ginnie Mae transactions, and $272.1 million in Fannie DUS.
- Agency issuance for YTD 2026 totaled $43.5 billion, 38% higher than the $31.5 billion recorded for same-period 2025.