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Alternative Assets  + Real Estate  | 
Brookfield Acquires $1B of Valley Bank CRE Loans

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.

Read More News Stories About: Brookfield Asset Management
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Valley National BancorpBrookfield Asset Management

About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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