Blackstone Acquires $2 Billion in Commercial Real Estate Loans from Atlantic Union Bank

Major deal underscores Blackstone’s growing influence in U.S. property lending as Atlantic Union Bankshares streamlines its balance sheet.

In a significant move to reshape the commercial lending landscape, private equity giant Blackstone (NYSE: BX) has acquired a $2 billion portfolio of commercial real estate (CRE) loans from Atlantic Union Bankshares, the Richmond-based regional bank. The deal, announced on Wednesday, highlights the increasing role of private capital in U.S. property finance and signals a shift in how regional banks manage risk amid ongoing volatility in the real estate sector.

Blackstone’s Strategic Expansion in Property Lending

With this acquisition, Blackstone solidifies its position as one of the largest players in the U.S. real estate lending market. The portfolio is composed of diverse performing loans secured primarily by office, retail, and multifamily properties located across the Mid-Atlantic and Southeastern United States.

“We are pleased to partner with Atlantic Union Bankshares on this important transaction,” said Jonathan Pollack, Global Head of Blackstone Real Estate Credit. “This acquisition aligns with our long-term strategy of expanding our footprint in high-quality, income-generating real estate assets.” (Source: Reuters)

The Portfolio: A Snapshot

Type of loans: Primarily performing CRE loans

Collateral: Office, retail, and multifamily properties

Geographic focus: Mid-Atlantic and Southeast U.S.

Loan value: $2 billion

Blackstone, which manages more than $60 billion in real estate debt strategies, continues to deploy capital as regional banks seek to de-risk following heightened regulatory scrutiny and uncertainty in the office sector.

Atlantic Union Bankshares: De-Risking Amid Industry Headwinds

For Atlantic Union Bankshares, the divestiture is part of a broader effort to shore up its balance sheet. Regional lenders have faced mounting pressure to reduce exposure to commercial real estate, particularly as office property values decline due to remote work trends and elevated interest rates.

“In response to evolving market conditions, we are proactively managing our loan portfolio to ensure financial resilience and continued service to our clients,” stated John Asbury, CEO of Atlantic Union Bankshares.

The sale will provide Atlantic Union with additional liquidity and reduce its exposure to an asset class that has posed challenges for many regional banks in recent years. Analysts note that similar transactions are likely to follow as banking regulators urge lenders to reassess risk concentrations.

Private Equity Steps In Where Banks Retreat

The transaction exemplifies a broader trend: as traditional banks pull back from commercial lending, private equity firms are increasingly stepping in to fill the gap. Blackstone, known for its vast real estate holdings, has ramped up its investments in property-related credit, further blurring the lines between lender and owner.

“These deals are a sign of the times,” said Tim McGee, Senior Financial Analyst at Fitch Ratings. “Private lenders are capitalizing on banks’ need to de-risk, gaining access to quality loans at likely attractive terms.”

Growing CRE Challenges for Banks

CRE loan exposure: Banks hold nearly 40% of all U.S. CRE debt, according to the Mortgage Bankers Association

Office sector pressure: Office vacancy rates remain elevated in major U.S. cities since the COVID-19 pandemic

Regulatory action: U.S. financial regulators have signaled greater scrutiny on CRE concentrations in mid-sized and regional banks

Broader Implications for U.S. Real Estate and Lending Markets

The Blackstone-Atlantic Union deal is part of a wave of CRE loan transactions as banks adjust portfolios and private lenders seize new opportunities. According to CBRE’s 2025 Q2 report, CRE loan sales to nonbank lenders surged by 45% year-over-year.

Increased private sector involvement could provide borrowers with more flexible financing options, but it also raises questions about transparency and systemic risk, as bank-held CRE loans are subject to federal oversight that private funds may not be.

“We’re seeing a fundamental realignment in commercial property financing,” said Jamie Woodwell, Head of Commercial Real Estate Research at the MBA. “These shifts will affect how risk is distributed across the financial system.”

What’s Next?

Market participants are watching for more such transactions in the coming quarters, as regional banks navigate regulatory challenges and private equity doubles down on CRE credit. For Blackstone, the deal represents another step in a long-term strategy to expand its debt platform.

Investors and analysts will monitor how Blackstone manages the portfolio’s performance and if similar sales by regional banks continue to reshape the U.S. property lending landscape.

Blackstone’s $2 billion CRE loan purchase from Atlantic Union Bankshares underscores the growing influence of private lenders in U.S. commercial real estate finance. As banks face regulatory and market pressures to pare back property exposures, private capital is poised to play an even larger role in shaping the sector’s future.

Sources:

Reuters: Blackstone buys $2 billion of CRE loans from Atlantic Union Bankshares

CBRE U.S. Q2 2025 Commercial Real Estate Lending Report

Mortgage Bankers Association (www.mba.org)

Fitch Ratings industry commentary