- Big banks are trying to dump commercial real estate loans as pressures mount in the sector.
- JPMorgan, Goldman Sachs, and Capital One are among those trying to shed debt exposure, sources told Bloomberg.
- Some banks are having trouble securing buyers, and have been holding onto loans as they search for a deal.
Big banks want to some of their commercial real estate loans, but buyers are proving scarce as troubles pile up in the sector, according to report out from Bloomberg this week.
JPMorgan, Goldman Sachs, Capital One, and M&T Bank are among firms trying to whittle down their commercial real debt holdings, sources familiar told Bloomberg this week, but have been struggling to find many interested buyers.
Banks could be willing to sell property loans at a discount as troubles mount in the sector, but some are hesitant to sell off commercial real estate debt at too-low of a price, as that could reignite fears of banking troubles, sources added. As a result, many banks are choosing to hold onto the debt while they seek better offers.
JPMorgan, for instance, has been looking to sell a $350 million loan backed by the HSBC Tower in Manhattan, Bloomberg reported, with the bank offering potential buyers ultra-low interest financing, sources said.
Capital One has also been trying to dump its portfolio of office debt based in New York, sources said, with the company’s chief financial officer stating last month that the bank is seeking to sell $900 million of office loans.
Goldman Sachs has been looking to sell its loans on hotel and apartment buildings, sources added, while M&T Bank is looking to shed a hotel loan.
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