
Brookfield Acquires $1B of Valley Bank CRE Loans
Valley National Bancorp announced the sale of a diverse pool of performing commercial real estate mortgage loans to Brookfield Asset Management. The final loan pool sold had contractual balances totaling approximately $925 million, with around $823 million previously identified for sale as of September 30, 2024.
The holding company for Valley National Bank said the loan pool was sold at a discount of about 1% to par value, and Valley will retain servicing responsibilities.
CEO Ira Robbins stated that the sale aligns with Valley’s strategic balance sheet goals, noting the transaction’s modest discount reflects the strength of their portfolio.
Brookfield’s managing partner, Bill Powell, highlighted the strategic nature of the acquisition for both parties. Valley expects to recognize an immaterial net loss in the fourth quarter due to the discount and transaction-related expenses.
The deal was advised by Morgan Stanley and is expected to close in the fourth quarter of 2024. Valley National Bank is a regional institution with over $62 billion in assets operating across six states.
