BrightSpire Prices $960M CRE CLO Backed by Multifamily Loans
BrightSpire Capital priced a $960 million managed commercial real estate collateralized loan obligation, expanding its term funding as the mortgage REIT seeks to recycle capital into new originations.
The transaction, BRSP 2026-FL4, is expected to close Oct. 16. BrightSpire plans to place approximately $844.8 million of investment-grade securities with institutional investors, providing financing that is non-recourse and not subject to mark-to-market margin calls.
The CLO is backed by interests in 29 first-lien, floating-rate mortgage loans secured by 38 properties across 11 states. Multifamily properties represent 94.2% of the collateral, with industrial assets accounting for the remaining 5.8%. BrightSpire subsidiaries originated all the underlying loans.
The transaction has an initial advance rate of 88% and a weighted-average coupon of one-month term SOFR plus 154 basis points before transaction costs. Its structure includes a 30-month reinvestment period and approximately $99 million of available proceeds that can be deployed during a six-month ramp-up period following closing.
Fitch Ratings and Morningstar DBRS assigned AAA ratings to the senior-most notes and rated the other offered classes. Morningstar DBRS will also rate the securities that are not being offered to outside investors.
President and Chief Operating Officer Andy Witt said BrightSpire plans to invest liquidity generated by the deal in new loan originations. The transaction is the company’s fifth managed CRE CLO and follows the BRSP 2026-FL3 deal completed earlier this year.
Citigroup served as sole structuring agent. Citigroup, Morgan Stanley, J.P. Morgan and Wells Fargo acted as co-lead managers and joint bookrunners.
BrightSpire also plans to redeem its BRSP 2024-FL2 securitization on Oct. 19, three days after the new CLO’s scheduled closing.