Nomura Executes $719M CMBS Deal for Keller Investment Properties

Nomura Executes $719M CMBS Deal for Keller Investment Properties

Blackstone Inc., a major player in the alternative asset management sector with a current market capitalization exceeding $155 billion, continues to influence the broader financial landscape. In a significant development within the commercial real estate debt market, Blackstone Inc. peer Nomura Securities has successfully priced the largest single-bank single-asset, single-borrower (SASB) commercial mortgage-backed securities (CMBS) transaction in nearly two years.

The financing vehicle, designated KELR 2026-MF, totals $719 million. This floating-rate, interest-only loan carries a two-year term with three one-year extension options. The capital is secured by a portfolio of 12 multifamily properties and one student housing asset, totaling 3,321 units. The properties are geographically dispersed across Utah, Nevada, and Arizona, with the student housing facility serving Utah Valley University.

The transaction involved a collaboration between Nomura and Keller Investment Properties, the borrower based near Salt Lake City. Newmark acted as the broker for the financing. According to ratings reports, the borrower acquired the properties between 2001 and 2022 and has invested $46 million in capital improvements. The proceeds from the CMBS issuance are allocated to refinance $696 million of existing debt, alongside covering $22.2 million in closing costs and reserves.

For Nomura, this deal highlights the capabilities of its commercial real estate lending platform, which launched last summer. For Keller, the transaction marks a shift from its traditional use of agency debt to a SASB CMBS structure. The deal was reportedly multiple times oversubscribed, indicating strong investor demand. The AAA-rated tranches, assessed by Fitch Ratings and Moody’s, priced at 135 basis points over the Secured Overnight Financing Rate. The entire closing process was completed in just over 60 days.

What to watch

• Future performance of the floating-rate loan given interest rate fluctuations.
• Keller Investment Properties’ potential future utilization of non-agency debt channels.
• Nomura’s pipeline of subsequent SASB CMBS deals following this benchmark transaction.

Source: original release