Benefit Street Partners on Track for $1.2B CRE CLO
This marks the company’s 18th such deal since 2015.
Benefit Street Partners Real Estate is set to close a $1.2 billion commercial real estate collateral loan obligation, according to KBRA and credit rating agency Fitch.
By debt volume, the deal is heavily concentrated in multifamily, with the sector accounting for more than three-quarters of the loan collateral. The remainder consists of hospitality, industrial and office.
The transaction’s initial collateral includes 59 loans and an additional $47.2 million in cash for the anticipated closing of two additional notes. Most of the debt is made up of pari passu participations—nearly 90 percent—with the remaining consisting of whole loans.
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Affiliates of Benefit Street originated the debt between March 2022 and April 2026. The collateral has fully extended maturity dates, now ranging from April 2027 to May 2031. Proceeds were predominantly used to refinance previous debt, as well as for acquisitions and recapitalizations.
The properties are spread throughout 20 states, with Florida (30.9 percent of the debt total) and Texas (24.1 percent) combined including more than half, trailed by North Carolina (8.7 percent), Maryland (7.1 percent) and Georgia (5.5 percent). By metro, Jacksonville, Fla. (14.1 percent) leads, followed by Dallas (11.2 percent), Charlotte, N.C., (6.6 percent) and Atlanta (5.5 percent).
By volume, the biggest loan in the pool is a portfolio deal of $128.5 million, which has as collateral three multifamily properties totaling 1,262 units in Sant Johns, Fla., and Saint Augustine, Fla.
Gaitlin Development Co. owns the trio, according to Yardi Matrix data. The firm built the communities between 2023 and 2024 for a total development cost of $331.6 million and plans to continue the lease-up process and bring the properties to a stabilized occupancy.
BSP’s debt deployment and securitization efforts
This latest CRE CLO will mark Benefit Street Partners Real Estate’s 18th securitization deal since 2015, with 11 already having been repaid in full and six currently outstanding. The company has funded more than 1,100 loans with a commitment north of $30 billion as of March.
This year, Benefit Street Partners closed the biggest real estate debt fund in its history, with a $10 billion investment capacity. The vehicle will provide junior and senior debt across major U.S. markets, with a particular focus on multifamily and middle-market assets.
