The Real Deal Miami

Blackstone Group to borrow $1.35B for U.S. portfolio

June 01, 2011 04:56PM

New York-based Blackstone Group will borrow up to $1.35 billion to refinance the debt on a portfolio of office buildings largely comprised of California properties, sources told Bloomberg News. Blackstone acquired most of the properties through its purchases of CarrAmerica Realty and Trizec Properties in 2006. MetLife and New York Life Insurance will underwrite senior mortgages worth $850 million, while the Government of Singapore Investment Corp. will provide a mezzanine loan to cover the rest. Bloomberg News said the move was reflective of an increased willingness to lend as the nationwide office market improves. The trend is especially apparent among life insurers, who now account for about 10 percent of commercial property financing as they can lend at lower interest rates, the article indicates. That’s because, unlike banks, they are investing their own money rather than borrowed funds. [Bloomberg]