Market Insights

The No. 1 Commercial Real Estate Loan Originator in Boston in 2016

The top originator of commercial real estate loans in Boston last year was Morgan Stanley, CrediFi found in our recently released Boston Lending Spotlight.

Morgan Stanley originated over $1 billion in CRE loans for Boston properties in 2016, according to a CrediFi analysis of a sample of $7.4 billion in loans originated in Boston during the 18-month period from January 2016 to June 2017.

That was significantly more than Boston’s No. 2 CRE lender in 2016, JPMorgan Chase, which originated between $600 million and $700 million in commercial real estate loans for Boston properties last year.

Morgan Stanley surged to the top 10 on the basis of a few large loans for properties such as New York-based Fortis Property Group’s 1.05-million-square-foot State Street Financial Center at 1 Lincoln St. in Boston’s financial district. The 36-story office building was built in 2003 and houses the State Street Bank headquarters.

Other commercial real estate loan originators on our top 10 list include foreign lenders like Deutsche Bank, and insurance and pension companies including Northwestern Mutual Life Insurance Company and MetLife.

Deutsche Bank originated a $330 million short-term loan on One Federal Street that made up a significant proportion of its Boston CRE financing for 2016. The office building is owned by New York-based real estate investment firm Tishman Speyer, which used the Deutsche financing to repay the 10-year, $280 million acquisition loan from Lehman Brothers. (The Deutsche Bank loan was replaced by a $380 million loan from the Teachers Insurance & Annuity Association of America this year.)

To download the entire Lending Spotlight, click here.

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