BrightSpire Capital announced that it has closed BRSP 2026-FL3, a $955 million managed commercial real estate collateralized loan obligation, marking the company’s fourth managed CRE CLO transaction. The securitization, which closed on February 17, 2026, reflects the company’s continued use of structured financing to support the growth of its loan portfolio.
The 2026-FL3 CLO includes approximately $833.2 million of investment-grade securities placed with institutional investors. The financing is structured on a non-mark-to-market, non-recourse basis, providing term funding secured by interests in 29 first-lien, floating-rate mortgages backed by 30 properties. The transaction launched with an 87.25% initial advance rate and a weighted average coupon at issuance of Term SOFR plus 1.69%, before transaction costs.
The collateral pool spans 11 states and is concentrated primarily in multifamily assets, which account for 95% of the portfolio, with the remaining 5% in mixed-use properties. All underlying loans were originated by company subsidiaries. The structure includes a 30-month reinvestment period and approximately $98 million of available proceeds intended for deployment within a six-month ramp-up period following closing.
The seniormost certificates received top-tier ratings of Aaa from Moody’s Investors Service, Inc. and AAA from Kroll Bond Rating Agency, LLC. Kroll Bond Rating Agency also assigned ratings to the remaining classes in the transaction.
Support: Wells Fargo Securities, LLC served as sole structuring agent. Wells Fargo Securities, Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC acted as co-lead managers and joint bookrunners, while Barclays Capital Inc. participated as co-manager.
KEY QUOTES:
“The successful execution of our fourth managed CRE CLO continues to highlight the strength of the platform and business strategy. This transaction was well received by a broad base of investors. Proceeds from the transaction will be reinvested in new loans to grow the overall loan portfolio and earnings.”
Andy Witt, President And Chief Operating Officer Of BrightSpire Capital
“We continue to diversify our funding sources, generating valuable liquidity, and expand our balance sheet’s non-recourse, non-mark-to-market, match term financing. CRE CLOs will continue to be an important financing source for our business, and we anticipate additional issuances in the periods ahead.”
Matthew Heslin, Chief Credit Officer And Head Of Debt Capital Markets At BrightSpire Capital
