Invesco Commercial Real Estate Finance Trust Closes $1.2 Billion CRE CLO in Record Deal

Invesco Commercial Real Estate Finance Trust, Inc. has announced the successful closure of its inaugural $1.2 billion managed commercial real estate collateralized loan obligation (CRE CLO), INCREF 2025-FL1, on May 7, 2025. This transaction marks a significant milestone for the company, demonstrating its expertise in real estate capital markets and commitment to excellence in real estate finance. The CRE CLO is structured by Morgan Stanley and secured by a diverse portfolio of approximately 55% multifamily and 45% industrial loans.

Key Takeaways:

• INCREF closed its inaugural $1.2 billion CRE CLO, INCREF 2025-FL1, on May 7, 2025, marking a significant milestone for the company.
• The CRE CLO is structured by Morgan Stanley and secured by a diversified portfolio of approximately 55% multifamily and 45% industrial loans.
• The transaction is the largest diversified CRE CLO issued in the US in the past three years, according to INCREF.
• INCREF has rapidly grown to become one of the five most active alternative lending platforms in the US, with $12.8 billion of assets under management as of December 2023.
• The company's "credit-over-yield" mandate has helped the team develop lasting partnerships with relationship borrowers, contributing to its success.

Statistics:

• $1.2 billion: The size of the CRE CLO closed by INCREF on May 7, 2025.
• 55%: The proportion of multifamily loans in the CRE CLO portfolio.
• 45%: The proportion of industrial loans in the CRE CLO portfolio.
• 40 years: The length of time INCREF has been focused on private credit secured by real estate.
• The largest diversified CRE CLO issued in the US in the past three years: INCREF 2025-FL1.
• $12.8 billion: The total assets under management by INCREF as of December 2023.

Sources:

• Invesco Commercial Real Estate Finance Trust, Inc. news release, May 7, 2025.