HomeStreet Bank’s Commercial Real Estate Sale to Bank of America

It is selling almost a billion dollars of its multifamily commercial real estate loans to Bank of America

12/30/2024 - 11:36
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Written by Banking Exchange staff

Seattle-based HomeStreet Bank announced last week that it is selling almost a billion dollars of its multifamily commercial real estate loans to Bank of America, which will yield a payout of more than $900 million and should bring the lending entity to profitability.

Analysts stated that the deal was a discounted rate in part because of the lower yield on most of the loans. HomeStreet reported earning losses throughout 2024.

Wall Street awarded the bank with positive earnings last week as the bank indicated it would use the sale to pay off debt.

Commercial real estate loans continue to be a concern for regional banks’ solvency heading into 2025.

The deal with Bank of America could close as quickly as Tuesday.

Tagged under Mergers Acquisitions; Feature; M&A; Lending; Commercial; Real Estate; Feature3;