WaFd Bank completes $2.8 billion multifamily loan sale to Bank of America
WaFd Bank, a subsidiary of WaFd, Inc., closed its previously announced sale of about 1,800 commercial multifamily real estate loans to Bank of America on June 21, 2024, for an aggregate purchase price of $2.6 billion. The price equals 91.96% of the $2.8 billion unpaid principal balance, and the company says the sale was executed at no loss and provides immediate liquidity for shareholders to weigh.
- Purchase price of $2.6 billion, or 91.96% of the $2.8 billion unpaid principal balance of about 1,800 loans
- Loans originated through the Luther Burbank Savings acquisition by WaFd Bank in March 2024; the sale was not a condition of that merger
- Bank of America is reselling the loans to funds managed by Pacific Investment Management Company LLC (PIMCO), according to the press release
- Management said the proceeds give the bank options to pay down debt, originate new loans, buy back stock, or a combination of these