Argentic to Close $952M CRE CLO
More than 60 percent of the encumbered properties belong to the multifamily sector.
Argentic Investment Management will close a collateralized loan offering backed by a total debt of $951.6 million, according to reports by KBRA and credit rating agency Fitch. The capital comprises 23 interest-only loans encumbering 53 properties, more than 60 percent belonging to the multifamily sector.
Situs Asset Management and Argentic Services Co. are slated to act as servicer and special servicer, respectively. Wilmington Trust will serve as trustee, while Computershare Trust Co. is set to take up note administration.
Featuring a 30-month reinvestment period, the transaction will initially have a collateral of 21 loans with a balance of $864.8 million. The remainder pertains to two pre-identified notes expected to close within 90 days.
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The sponsors deployed approximately 86 percent of the debt across refinancing deals, while roughly 14 percent went toward acquisitions and recapitalizations. The stabilized LTV appraised figure clocked in at 59.6 percent, below the third-quarter average of 66.9 percent reported by CBRE.
The multifamily trust balance amounts to $571.6 million, followed by industrial at $133.8 million, hospitality ($127.3 million), office ($70 million) and retail ($48.8 million). The largest 10 loans make up 62.5 percent of the pool.
The largest note, an up-to $94 million loan, served to refinance The Serén, a 132-unit multifamily property in Brooklyn, N.Y. Strekte Group developed the community that came online this year.
Another debt refinanced NOVI at Concord, a 304-unit community in Concord, N.C., within metro Charlotte. Argentic provided $50 million to the partnership between Lansing Melbourne Group and Denholtz Properties for this property.
CRE CLO’s special servicing rises slightly
While Fitch reported an increase of 20 and 27 basis points in CRE CLO special servicing and modification activity, respectively, the delinquency rate declined from 1.60 percent in June to 0.99 percent in September.
Fitch’s portfolio consisted of 34 such active deals as of September, with 21 issued during the first nine months of 2025 alone. CRE CLOs continued closing well into the fall, one of October’s deals being Greystone’s $451.6 million transaction encumbering 46 senior housing properties in 13 states.
