📰 What Happened: Blackstone just bought another $2 billion in CRE loans from Atlantic Union Bankshares at a 7% discount. Over the last 24 months, the world’s largest alternative investment firm has cornered $20 billion in discounted property loans, many from small, regional, and foreign banks struggling with low-interest loans made before the rate hikes.

🔍 A Closer Look: The loans are primarily backed by apartment buildings and neighborhood retail centers. Many banks are reluctant to sell their loans, fearing losses, which has cooled the lending market for local developers. Notably, the $2 billion sale follows Atlantic Union’s merger with Sandy Spring Bank, enabling them to "mark-to-market" their loan portfolio without a loss.

🧠 Why It Matters: Blackstone’s latest deal highlights ongoing issues in the commercial property sector, which is struggling under the strain of rising interest rates. The acquisition signals a potential increase in distressed asset sales, as consolidation among smaller banks could lead to more loan portfolio sales, offering opportunities for large investors to capitalize on discounts.