U.S. banks are planning to divest some of their commercial real estate loans — or are already doing so — to reduce their exposure to CRE, even if that means selling loans that are current at a discount, The Financial Times reports.
“The fact that banks want to sell loans is coming up in a lot of conversations,” CoStar analyst Chad Littell told the FT.
Last month, PacWest Bancorp agreed to sell a $2.6B portfolio of construction loans to investor Kennedy-Wilson Holdings. The sale included 74 loans, or more than half of the $4.6B in construction loans the company had on its books…