Truist Financial in Charlotte, NC, sold one of its commercial real estate and loan management divisions, getting rid of a former SunTrust Banks platform that managed $ 34 billion in CRE assets. .
The company with $ 506 billion in assets – formed in December by the merger of BB&T and SunTrust – said in a press release dated September 18 that he had sold his Cohen Financial platform to SitusAMC Holdings in New York. He did not disclose the price.
SitusAMC will integrate Cohen into its own service and asset management group.
Truist will retain Cohen’s debt investment and advisory platform, and the company will retain a role in originating, managing and managing agency assets and CRE loans through its Grandbridge Real Estate division. Capital, which was a BB&T unit before the sale.
“This transaction allows us to refine our focus as we continue to integrate operations with Grandbridge,” said Truist.
While Truist has not disclosed the reason for the sale, the company, led by Chairman and CEO Kelly King, has sought to cut costs as part of ongoing integration efforts.
As of August 31, Cohen Financial was processing and managing approximately 6,900 loans with an outstanding balance of $ 34 billion.
The sale included the transfer of approximately 122 employees from Cohen. SitusAMC will maintain existing service partnership links with Truist and Grandbridge.
The transition will reunite two former Cohen executives with their former employer.
Tim Mazzetti, U.S. Head of Services and Asset Management for SitusAMC, and Dean Wheeler, Head of Client Services for the Company, worked at Cohen between 2006 and 2019, leading the development of the loan and asset management platform for structured finance and CRE / multi-family loan assets held for institutional clients.
Mazzetti and Wheeler retained their roles at Cohen when the company was sold to SunTrust in 2016, but left to join SitusAMC last year. (SitusAMC, which operates in the United States, Europe, and the Asia-Pacific region, is majority-owned by funds linked to private equity firm Stone Point Capital.)
“We are very happy to have the opportunity to buy back our platform, which we have spent, you know, over 12 years building,” Mazzetti said in an interview.
Mazzetti said the Cohen portfolio will primarily provide CRE loans held by life insurance companies, as well as a portfolio of investor mortgages secured by single-family home rentals that are frequently bundled in asset-backed securities. mortgage claims.
SitusAMC’s portfolio consists of approximately 10,000 loans with a total outstanding of $ 130 billion, consisting primarily of larger structured finance CRE loans, the proceeds of which generally finance construction or bridge finance. SitusAMC also acts as a special service for distressed loans.
Mazzetti said none of the portfolios include traditional CMBS loans, which have seen a dramatic increase in defaults and defaults.
“It’s very similar to the agency and some of the other books you see [with] insurance companies and banks are blocking wallets, ”he said. “Of course, there has been a significant increase in ‘defaults,’ but it’s not pretty much the same thing you see in CMBS. We don’t see anything like these numbers.”