WaFD Inc. announced in a regulatory filing that its subsidiary, Washington Federal Bank, has agreed to sell 2,000 commercial multifamily loans to Bank of America. The portfolio, with an unpaid principal balance of $3.2 billion, will be sold for approximately $2.9 billion, equating to 91.6% of the balance.
Seattle-based WaFD did not specify the locations of the properties tied to the loans. The bank operates in nine western states: Washington, Oregon, Idaho, California, Nevada, New Mexico, Utah, Arizona, and Texas.
The transaction is expected to close on June 21. Following this, WaFD plans to enter into a structured transaction or loan sale with one or more funds managed or advised by Pacific Investment Management Co. (PIMCO).
Bloomberg News noted that WaFD recently surpassed two regulatory scrutiny thresholds: having a commercial real estate loan portfolio exceeding three times its capital and experiencing a growth of at least 50% in its CRE loan portfolio over the past three years.
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By Proptechbuzz
By Ravi Kumar