National + California + Finance | May 22, 2023

PacWest Bancorp has agreed to sell a portfolio of 74 real estate construction loans to Kennedy-Wilson with an outstanding principal balance of $2.6 billion

PacWest Selling $2.6B Construction Loan Portfolio to Kennedy-Wilson

PacWest Bancorp said in a regulatory filing Monday that it had agreed to sell a portfolio of 74 real estate construction loans to Kennedy-Wilson Holdings with an outstanding principal balance of $2.6 billion. Bloomberg News reported that the portfolio was selling at a discounted price of $2.4 billion.

Kennedy-Wilson will assume all remaining future funding obligations under the acquired loans of approximately $2.7 billion, according to the SEC filing. The bank will also sell to Kennedy Wilson an additional six real estate construction loans with an aggregate principal balance of approximately $363 million.

The loan sale will close in multiple tranches during the second and third quarters, PacWest said.

PacWest held $4.6 billion in construction loans across the residential and commercial sectors, according to its latest quarterly earnings report. It also held $3.8 billion in commercial loans, $5.5 billion in multifamily loans and $15.4 billion in residential mortgages.

Pictured: PacWest headquarters at 9701 Wilshire Blvd. in Beverly Hills.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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