News

• KRE 2025-AIP4, a $740 million SASB backed by a floating-rate, five-year loan (at full extension) for KKR to refinance 29 industrial properties totaling ~7.5 million sf located across six states.
• BLP 2025-IND, a $540 million SASB backed by a floating-rate, five-year loan (at full extension) for Brookfield to refinance 54 industrial properties totaling ~6 million sf located across 16 states.
• SCG 2025-DLFN, a $457 million SASB backed by a floating-rate, five-year loan (at full extension) for Starwood and Dalfen Industrial to acquire a portfolio of 38 industrial properties totaling ~5 million sf across 10 states.

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totals $33.5 billion, 179% higher than the $12 billion for same-period 2024. 

• Conduit AAA spreads were wider by 3 bps at +81, while A-S spreads were wider by 5 bps at +110; AA and A spreads were unchanged at +130 and +160, respectively. 
• Conduit BBB- spreads were unchanged at +415.
• SASB AAA spreads were wider by 3 bps, ranging from +110 to +120, depending on property type.
• CRE CLO AAA and BBB- spreads were unchanged at +125 / +130 (Static / Managed) and +350 / +365 (Static / Managed). 

• Agency issuance totaled $1.9 billion last week, consisting of $1.2 billion in Freddie K and Multi-PC transactions, $481 million in Fannie DUS, and $256.2 million in Ginnie-Mae transactions.
• Year-to-date agency issuance totaled $22.4 billion, 31% higher than the $17 billion for same-period 2023.

The Economy, the Fed, and Rates…

• Consumer Spending Weakness: Inflation-adjusted consumer spending dropped by 0.5% in January, marking the largest monthly decline in nearly four years. While partly attributable to severe weather conditions and a post-holiday pullback, the moderation in services spending suggests deeper underlying caution among consumers. As Gregory Daco, Chief Economist at EY, noted: