Washington Federal Bank (WaFd Bank), the wholly owned subsidiary of WaFd, has announced the consummation of the sale of approximately $2.8 billion of multifamily commercial real estate loans to Bank of America, which in turn is selling the loans to funds managed by Pacific Investment Management (PIMCO).
It is considered one of the largest non–FDIC assisted commercial real estate loan sales ever. The sale of the multifamily loans was executed at no loss to WaFd and provides immediate liquidity going forward.
“This should prove to the investment community that the sky is not falling when it comes to commercial real estate loans,” said Brent Beardall, WaFd Bank president and CEO. “These are high-quality loans, and we believe the purchase price is reflective of the low amount of credit risk in the portfolio. Further, this sale was executed at 92-percent of principal balance. That discount is almost entirely attributable to changes in interest rates, not the quality
