Los Angeles student housing property leads new bond issuance
Lument Finance Trust has finalized the pricing of a $663.8 million commercial real estate CLO, primarily backed by multifamily assets, underscoring ongoing investor demand for apartment-focused financing.
According to the company, 93.9% of the collateral is tied to apartment properties. The securitization is built on 26 mortgage loans totaling $554.8 million, along with $109 million allocated for six delayed-acquisition assets that have already been identified.
Altogether, the offering includes 32 loans covering 51 properties, with manufactured housing and self-storage assets rounding out the remaining collateral.
A portion of the proceeds — about $436.4 million — will be used to retire debt from Lument’s previous CLO, while more than $200 million will be available to support new lending activity.
The deal reflects surging investor appetite for multifamily-backed securities. Nonbank lenders have issued more than $28 billion in CRE CLOs so far this year, with roughly two-thirds of those deals tied to multifamily loans, according to CoStar data — nearly triple the volume seen in each of the past two years.
Lument’s new securitization features a 30-month reinvestment period, signaling confidence in near-term lending opportunities.
The largest loan in the package is a $43.7 million first mortgage for Axiom Westwood, a 153-unit student housing complex near the University of California, Los Angeles. The loan refinances older debt, and the property — which primarily serves UCLA students — reached 98% occupancy in October.
Many of the other loans included in the securitization were originated between August 2021 and October. Most of them — 74.5% — come with extension options, with fully extended maturity dates ranging from February 2026 to January 2030.
Lument Finance Trust operates as a minority-owned subsidiary of Orix, a global financial services company headquartered in Tokyo with $559 billion in assets under management. Since its launch in 2020, Lument has originated $41 billion in real estate loans across more than 6,000 transactions, and currently services about $54 billion in assets.
Source: Original reporting by Mark Heschmeyer, CoStar News.
