Atlantic Union Sells $2 Billion CRE Loans to Blackstone
Deal News | Jun 26, 2025 | Blackstone
Atlantic Union Bankshares Corporation has finalized the sale of approximately $2 billion in commercial real estate loans to Blackstone, reflecting Atlantic Union's strategic response following its merger with Sandy Spring Bancorp, Inc. Completed on June 26, 2025, this transaction with Blackstone Real Estate Debt Strategies (BREDS) marks a critical step in integration efforts after the Sandy Spring acquisition. The loan sale, executed at a valuation in the low 90s as a percentage of par value, aims to reduce Atlantic Union’s concentration in commercial real estate, freeing up assets for future growth. John Asbury, CEO of Atlantic Union, emphasized the transaction's role in creating long-term value for shareholders. Blackstone's expertise in real estate credit markets underscores its capability to manage these assets, as highlighted by Tim Johnson, Global Head of BREDS. Proceeds from the sale are anticipated to settle high-cost deposits and enrich Atlantic Union’s securities portfolio. Financial advising for this deal was provided by Morgan Stanley for Atlantic Union and Citigroup Global Markets along with CBRE for Blackstone, while legal advisories came from Hunton Andrews Kurth LLP for Atlantic Union, and Gibson, Dunn & Crutcher LLP, Ropes & Gray LLP, and Benesch Friedlander Coplan & Aronoff LLP for Blackstone.
Sectors
- Commercial Real Estate
- Financial Services
- Investment Banking
Geography
- United States – The transaction involves Atlantic Union and Blackstone, both headquartered in the U.S., with the operations spread across Virginia, Maryland, North Carolina, and New York.
Industry
- Commercial Real Estate – The article discusses the sale of commercial real estate loans, highlighting transactions and investment strategies in this sector.
- Financial Services – Both companies involved, Atlantic Union and Blackstone, operate in the financial services sector, managing a range of financial activities including investment and loan management.
- Investment Banking – The article involves several investment banks such as Morgan Stanley and Citigroup providing financial advisory services for the transaction.
Financials
- $2 billion – The total value of the commercial real estate loans sold by Atlantic Union to Blackstone.
- $76 billion – The amount of assets under management by Blackstone Real Estate Debt Strategies, indicative of their scale in real estate credit markets.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Atlantic Union Bankshares Corporation | Seller | Company | A holding company for Atlantic Union Bank, operating in Virginia, Maryland, and North Carolina, selling its CRE loans. |
| Blackstone | Buyer | Company | A leading global investment business acquiring a $2 billion portfolio of CRE loans from Atlantic Union. |
| Morgan Stanley & Co. LLC | Financial Advisor | Company | Served as the sole structuring advisor to Atlantic Union for the transaction. |
| Citigroup Global Markets Inc. | Financial Advisor | Company | Acted as a financial advisor to Blackstone during the transaction. |
| CBRE National Loan & Portfolio Sale Advisors | Financial Advisor | Company | Provided financial advisory services to Blackstone alongside Citigroup. |