Brookfield Purchases $1B CRE Loan Portfolio from Valley National

Valley National Bancorp announced that unit Valley National Bank has completed its sale of a diversified pool of seasoned commercial real estate mortgage loans to Brookfield Asset Management.

The final loan pool, totaling $925M, was sold at a 1% discount, and $823M of the pool had already been classified as held for sale. Valley will continue to service the loans. Bill Powell, managing partner in credit for Brookfield said the deal “demonstrates our ability to step in as an alternative lender to provide creative, flexible capital solutions.”

Valley expects to incur an incremental immaterial net loss in the fourth quarter attributable to the discount on loans not previously designated as held for sale and customary transaction-related expenses. Morgan Stanley & Co. served as sole advisor to Valley National Bank.

Source: https://www.globenewswire.com/news-release/2024/12/03/2990533/0/en/Valley-National-Bank-Closes-on-the-Sale-of-Nearly-1-Billion-of-Commercial-Real-Estate-Loans-to-Brookfield-Asset-Management.html