Blackstone Real Estate Debt Strategies has acquired $2bn (€1.7bn) of US commercial real estate (CRE) loans from Atlantic Union Bank’s holding company.
Blackstone acquired the loan pool from Atlantic Union Bankshares Corporation for approximately 90% to 95% of its face value, with the bank retaining responsibility for all customer-facing servicing and management.
Tim Johnson, global head of Blackstone Real Estate Debt Strategies, said: “This transaction demonstrates the breadth of our market-leading platform and deep expertise providing solutions to financial institutions for their commercial real estate portfolios.
“With $76bn of assets under management, including the recent closing of one of the largest real estate debt funds ever, we believe we are well-positioned to access differentiated real estate credit investment opportunities on behalf of our institutional, insurance and individual investors.”
The loan sale was part of a plan for Atlantic Union’s merger with banking peer Sandy Spring Bancorp, a transaction that was completed on 1 April 2025.
John Asbury, president and CEO of Atlantic Union, said: “After closing our acquisition of Sandy Spring, we have been focused on integration and execution. Today’s announcement is another proof point of Atlantic Union’s ability to execute and deliver on transactions that create long-term value for our shareholders.
“We were pleased to work with Blackstone Real Estate on this transaction, which both sides executed seamlessly. The loan sale transaction reduces our CRE concentration and frees up capacity for potential future growth.
The bank said it plans to use the proceeds from the loan sale to pay down high-cost deposits and other high-cost funds, as well as to invest in its securities portfolio.
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