CRE Securitized Debt Update
June 3, 2025
Private-Label CMBS and CRE CLOs
Five transactions totaling $3.4 billion priced last week:
- PFP 2025-12, a $1 billion CRE CLO sponsored by Prime Finance’s Short Duration 9 fund. The managed transaction comprises 13 whole loans and 15 loan participations, secured by 39 properties in 16 states. The pool’s top three property types are multifamily (75.1%), industrial (10.6%), and hotel (7.5%).
- BX 2025-LUNR, a $950 million SASB backed by a floating-rate, five-year loan (at full extension) for Blackstone to refinance a portfolio of 59 primarily industrial assets across 13 states.
- IP 2025-IP, a $675 million SASB backed by a fixed-rate, five-year loan for Stellar Management and Vornado Realty Trust to refinance the Independence Plaza multifamily complex in the Tribeca neighborhood of Manhattan.
- BANK 2025-BNK50, a $490.9 million conduit backed by 34 10-year loans secured by 71 properties across 18 states from JPMorgan, BofA, Morgan Stanley, NCB, and Wells.
- BPR 2025-ALDR, a $290 million SASB backed by a fixed-rate, five-year loan for Brookfield and New York State Common Retirement Fund to refinance Alderwood, a regional shopping mall in Lynnwood, WA.
By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totaled $67.4 billion, representing a 76% increase from the $38.2 billion recorded for the same period in 2024.
Spreads Tighten
- Conduit AAA and A-S spreads were tighter by 2 bps and 15 bps to +88 and +115. YTD, they are wider by 13 bps and 10 bps, respectively.
- Conduit AA and A spreads were tighter by 5 bps and 10 bps to +165 and +215. YTD, they are wider by 30 bps and 50 bps, respectively.
- Conduit BBB- spreads were tighter by 20 bps at +555. YTD, they are wider by 130 bps.
- SASB AAA spreads were tighter by 1 - 2 bps to a range of +115 to +142, depending on property type. YTD, they are wider by 8 - 25 bps.
- CRE CLO AAA and BBB- spreads were unchanged at +150 and +425, respectively.
Agency CMBS
- Agency issuance totaled $959.8 million last week, comprising $567.2 million of Fannie DUS, a $328.5 million Freddie Q transaction, and $64.1 million of Ginnie transactions.
- Agency issuance for the year totaled $55.1 billion, 42% higher than the $38.8 billion for the same period last year.