Washington Federal Bank, a subsidiary of WaFd, Inc. WAFD, has successfully sold $2.8 billion worth of multi-family commercial real estate loans to Bank of America in the largest non-FDIC-assisted transaction ever recorded for CRE loans. The sale was executed at 92% of the principal balance.
As reported in a regulatory filing by parent company WaFd, these 2,000 multifamily loans currently have an unpaid principal balance of $3.2 billion and this sale is part of the regional lender’s strategy to reduce its exposure to 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 loans were originally part of Luther Burbank Savings before being acquired by WAFD in February.
This successful completion marks another milestone for WaFd as it continues its efforts towards optimizing its portfolio and reducing risk exposure while maintaining strong financial performance.
