CIBC has offloaded US$316 million in U.S. office loans at a discounted price, Bloomberg reported.

Toronto-based CIBC secured deals with multiple buyers for loans backed eight U.S. office properties in such cities as San Francisco, Seattle and Austin, Tex., the news agency reported while citing an anonymous source who had knowledge of the deals.

CIBC has declined to comment on the report.

Bloomberg previously reported that CIBC was looking to shed some U.S. office loans.

North American office markets face ongoing pressure due to large vacancies in the aftermath of the COVID-19 pandemic, changing work patterns and high borrowing costs. As a result of the many challenges, banks have sought to cut back on real estate exposure and view loan sales as one way to ease pressures building on their portfolios, Bloomberg noted.

Photo: CIBC

Get Ready for Canada Kick-off

Connect CRE will hold its inaugural Canada Kick-off Event in Toronto on June 11. This will be Connect’s first commercial real estate industry conference in Canada. Panelists will include Syl Apps, managing director and co-country head for Hines; Lindsay Brand, chief investment officer at Concert Properties; Mark Kenney, CEO of Canadian Apartment Properties REIT; and, Marie-France Benoit, Avison Young’s director of Canadian market intelligence. Come and gain insights from industry leaders on such matters as buyer sentiment amid a lower interest-rate environment, cross-border commercial real estate transaction trends, and investors’ outlook for 2024 and beyond. Register today.