Benefit Street Partners Closes $1.1B CRE CLO

Benefit Street Partners has closed a roughly $1.1 billion managed commercial real estate collateralized loan obligation, its fifth such deal this year.

The CLO, BSPDF 2026-FL6, has a 30-month reinvestment period and an initial advance rate of 88.25%. Its weighted average interest cost is the one-month CME Term SOFR rate plus 1.77 percentage points, before transaction costs. The deal priced Oct. 20.

That financing cost is slightly higher than on the firm’s FL3 deal in March, which priced at SOFR plus 1.68 points with an 88.625% advance rate.

With FL6, Benefit Street has issued five commercial real estate CLOs totaling about $5 billion in 2026.

“The closing of FL6, the third CLO from our Opportunistic Debt Fund II, reflects the continued momentum across our real estate business and the strength of our financing capabilities,” said Jerry Baglien, head of real estate at BSP.

Opportunistic Debt Fund II held its final close in January with $10 billion of investable capital, including related vehicles and expected leverage, on $3 billion of equity commitments. It was the firm’s largest fundraise for the asset class. The fund originates senior and junior commercial real estate loans across major U.S. markets, with an emphasis on multifamily.

BSP, a wholly owned subsidiary of Franklin Templeton, managed $97 billion in assets as of Aug. 31, including Apera.

Wells Fargo Securities, LLC served as sole structuring agent. Barclays Capital Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities, LLC and Morgan Stanley & Co. LLC served as co-lead managers and joint bookrunners. Performance Trust Capital Partners, LLC served as co-manager.