Blackstone Acquires $2B CRE Loan Portfolio from Atlantic Union
Blackstone has further expanded its commercial real estate credit platform with the acquisition of approximately $2 billion in performing CRE loans from Atlantic Union Bank. The loans originated from Sandy Spring Bank and were transferred to Atlantic Union as part of its merger with Sandy Spring Bancorp, which closed in April 2025.
The transaction was executed at a discount in the low 90s to par and marks another strategic move by Blackstone Real Estate Debt Strategies (BREDS), the firm’s real estate credit platform that now manages $76 billion in assets. BREDS raised $8 billion for its fifth flagship fund earlier this year.
Atlantic Union will retain customer-facing servicing responsibilities and intends to use proceeds from the sale to reduce funding costs and enhance its securities portfolio. CEO John Asbury said the move aligns with the bank’s post-merger strategy to reduce commercial real estate concentration and support future balance sheet growth.
“This transaction demonstrates the breadth of our market-leading platform and deep expertise providing solutions to financial institutions for their commercial real estate portfolios,” said Tim Johnson, global head of BREDS.
The acquisition adds to Blackstone’s growing dominance in CRE credit. Over the past two years, the firm has amassed more than $20 billion in loan portfolios, including a $1 billion package of senior mortgages from Deutsche Pfandbriefbank and a significant stake in Signature Bank’s $17 billion CRE book in partnership with CPPIB and Rialto Capital.
According to its Q1 2025 earnings report, Blackstone’s total real estate AUM reached $320 billion, underscoring the firm’s expansive reach in both equity and debt strategies across the sector.
Morgan Stanley served as structuring advisor to Atlantic Union. Citigroup and CBRE advised Blackstone. Legal counsel was provided by Hunton Andrews Kurth for Atlantic Union and by Gibson Dunn, Ropes & Gray, and Benesch Friedlander Coplan & Aronoff for Blackstone.