Washington Federal Bank, a subsidiary of WaFd, Inc. (WAFD), has successfully sold nearly $2.8 billion in multi-family commercial real estate loans to Bank of America at 92% of the principal balance. This transaction marks the largest non-FDIC-assisted sale of CRE loans on record.
According to a regulatory filing by parent company WAFD, these 2,000 multifamily loans currently have an outstanding principal balance of $3.2 billion and were sold as part of the bank’s efforts to reduce its exposure in the commercial real estate sector.
The buyer for these divested CRE loans is Pacific Investment Management Company LLC (PIMCO), who will now manage them going forward after BAC acquired them from Washington Federal Bank. These particular CRE loans were originally acquired by WAFD through their acquisition of Luther Burbank Savings in February.
This successful sale highlights WaFd’s commitment to strategically managing their portfolio and reducing risk while also providing opportunities for other institutions like PIMCO to invest in this lucrative market segment.
