Atlantic Union Sells $2 Bln CRE Loan Portfolio To Blackstone To Reduce Exposure

(RTTNews) - Atlantic Union Bankshares Corporation, parent of Atlantic Union Bank, Thursday has completed the sale of approximately $2 billion in performing commercial real estate - CRE loans to vehicles affiliated with Blackstone Real Estate Debt Strategies, a division of Blackstone (BX).

The loans were initially acquired through Atlantic Union's recent merger with Sandy Spring Bancorp, which closed on April 1, 2025.

Atlantic Union CEO John Asbury stated the transaction aligns with the company's post-merger integration goals, reduces CRE exposure, and enhances capacity for future growth. Blackstone's Tim Johnson noted the deal underscores the firm's strong platform and experience in real estate credit, with $76 billion in AUM.

The loan portfolio was sold in the low 90s as a percentage of par, with Atlantic Union retaining customer-facing servicing. Proceeds from the sale will be used to reduce high-cost funding and expand the bank's securities holdings.

This transaction adds to Blackstone's $20 billion in CRE loan acquisitions over the past two years. Morgan Stanley advised Atlantic Union, while Citigroup and CBRE advised Blackstone. Multiple law firms, including Hunton Andrews Kurth and Gibson Dunn, provided legal counsel.

Friday, BX closed at $151.11, up 1.98%, with no after-hours movement on the NYSE.