GE Capital sells $2.3bn US loan portfolio

GE Capital has sold off a $2.3bn (UPB) US portfolio of 313 performing, sub-performing and non-performing mortgage loans on 450 properties.

GE Capital has sold off a $2.3bn (UPB) portfolio of 313 performing, sub-performing and non-performing mortgage loans secured by more than 450 office, hotel, retail and leisure properties across the US. 

Deutsche Bank AG purchased the largest portfolio, 46 performing and sub-performing loans with a $1.59bn UPB. 

Three of the largest loans, all part of Deutsche’s cut, are secured by the 32 Old Slip office tower in Manhattan’s Financial District, the JW Marriott Houston (located at 806 Main Street), and a Meristar hospitality portfolio, a CBRE spokesperson said.

Waterfall Asset Management bought 65 small balance loans totaling $565m, while Newcastle Investment Corporation purchased two performing loans on a portfolio of golf courses totaling $157m.

A large component of the assets in the portfolio are located in New York, California and Florida.

“The robust interest from the market, both international and domestic, was a testament to the quality of the offering and the continued appetite for high-quality mortgage loans in the secondary market from the most sophisticated of institutions,” said Patrick Arangio, a vice chairman with CBRE Capital Markets’ National Loan Sale Advisory Group, who led a the team that arranged the financing with SVP Jack Howard.

In April GE announced it would exit its commercial real estate lending business by the end of the year. The company agreed to sell its UK, US and Canadian senior property loan book to Wells Fargo for $9bn and $8.8bn of US senior loans and Australian/Mexican performing loans to Blackstone.

Blackstone also agreed to pay $3.3bn for GE Capital’s remaining US properties and €1.9bn for its European property assets, mainly in France, Spain and the UK.