First Internet Bancorp, the parent company of First Internet Bank, announced that its banking unit has agreed to sell up to $869 million of performing single-tenant lease financing loans to vehicles affiliated with Blackstone Real Estate Debt Strategies (BREDS). First Internet Bank will continue to service the loans on behalf of customers. 

The loans are expected to be sold at roughly 95% of unpaid principal balance, inclusive of transaction costs. Upon closing, First Internet Bancorp anticipates moving approximately $550 million of deposit balances off-balance sheet, with remaining proceeds earmarked for near-term loan growth opportunities. Additional deposits may also be shifted off-balance sheet in future transactions. 

“This proposed transaction is a decisive step that advances key strategic priorities, including strengthening our capital position, accelerating operating performance towards our near-term target of 1.00% return on average assets, and significantly enhancing net interest margin,” said David Becker, CEO and Chairman of First Internet Bancorp. 

The deal, expected to close around September 18, 2025, underscores Blackstone Real Estate’s push into commercial real estate loans. The BREDS platform has deployed $38 billion since January 2024, following major acquisitions including a $17 billion stake in Signature Bank’s CRE portfolio, a $1 billion senior mortgage loan book from PBB, and $2 billion in CRE loans from Atlantic Union Bank. 

Piper Sandler Loan Strategies, LLC served as the introducing broker on behalf of First Internet Bancorp. Gibson, Dunn & Crutcher LLP and Ballard Spahr LLP acted as legal advisors to Blackstone. 

Connect Money will spotlight rising stars who have made a valuable contribution to the alternative investment industry. Based on your nomination, we will recognize professionals who have significantly influenced both the workplace and community. The deadline is September 10. Click here to submit your nominations.