BrightSpire Closes $955M CRE CLO Backed by Multifamily Loans
BrightSpire Capital has closed BRSP 2026-FL3, a $955 million managed commercial real estate collateralized loan obligation. The transaction included the placement of approximately $833.2 million of investment-grade securities with institutional investors, providing term financing on a non-mark-to-market, non-recourse basis.
The CLO is backed by interests in 29 first-lien floating-rate mortgages secured by 30 properties across 11 states. The collateral pool is predominantly multifamily (95%), with the remainder in mixed-use assets. The deal features an 87.25% initial advance rate and a weighted average coupon at issuance of Term SOFR + 1.69%, before transaction costs.
The structure includes a 30-month reinvestment period and approximately $98 million in available proceeds to be deployed during a six-month ramp-up window.
Moody’s Investors Service and Kroll Bond Rating Agency assigned Aaa and AAA ratings, respectively, to the seniormost certificates, with Kroll providing ratings on the remaining tranches.
“CRE CLOs will continue to be an important financing source for our business, and we anticipate additional issuances in the periods ahead,” said Matthew Heslin, chief credit officer and head of debt capital markets at BrightSpire Capital.
Wells Fargo Securities, LLC acted as sole structuring agent. Wells Fargo Securities, LLC, Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC acted as co-lead managers and joint bookrunners and Barclays Capital Inc. acted as a co-manager.
The company also intends to redeem its BRSP 2021-FL1 securitization on February 19, 2026.