Dino Paparelli

Deutsche Bank was an active player in the CRE debt space in 2024 on both the CMBS and balance sheet sides.

The investment banking giant originated $9.4 billion of CMBS volume last year from 49 transactions that included 25 single-asset, single-borrower loans and 24 conduit deals. This marked a big boost from the $3.8 billion of CMBS originations Deutsche Bank executed in 2023, when there were more unknowns due to higher interest rates. 

“Last year saw the CMBS market coming back, and I think we were in a good position to take advantage in the fixed-income market, particularly in the U.S., and we were very successful in our conduit business,” Dino Paparelli said. 

In addition to its heavy involvement in the public debt markets, Deutsche Bank also participated in 30 balance sheet deals in 2024 encompassing $3.4 billion of volume. 

Prior to 2024, Deutsche Bank set the stage for a big year when it was the first of the big lenders to offer five-year, fixed-rate, pooled CMBS loans in early 2023. This proved to be a pioneer move, with the CMBS market now largely shifted to five-year offerings. 

“Shortening the usual fixed-rate, 10-year term to five may sound like a very obvious solution, but it was something that we started, and it changed the dynamic of the conduit market in the U.S.,” Paparelli said.

Among the notable transactions Deutsche Bank closed last year was as the sole bookrunner on a $650 million CMBS SASB loan in August for the Stahl Organization as part of a $750 million refinance the developer received for its 277 Park Avenue office building. At the time, the deal marked the largest office SASB deal since early 2022.

 “It was a success, and it opened up a season of very successful large loan office CMBS deals that continued after our trade,” Paparelli said. “It was a milestone in the recovery of the CMBS office market.”

Deutsche Bank also closed a $493 million CMBS loan in July for Fortress Investment Group to refinance 41 industrial outdoor storage (IOS) assets in eight West Coast markets adjacent to ports. It marked the first foray of the IOS sector into the CMBS market, according to Deutsche Bank. 

On the balance sheet side, Deutsche Bank provided a $195 million construction loan with JVP Management for a planned 18-story condominium building at 1122 Madison Avenue on  Manhattan’s Upper East Side co-developed by Legion Investment Group and Nahla Capital. 

Deutsche Bank also led a $120 million loan for Miami Worldcenter Associates to refinance its planned 27-acre Miami Worldcenter retail development.