Blackstone to Buy About $870 Million of Loans From Online Bank

Blackstone Inc., a leading investment firm, has agreed to purchase up to $869 million worth of commercial real estate loans from a unit of First Internet Bancorp, an online bank. The loans are in the form of single-tenant lease financing, which involves properties leased to a single commercial tenant. The transaction allows First Internet Bancorp to free up capital and focus on its core banking business, while Blackstone gains exposure to a portfolio of commercial real estate assets. The deal is expected to strengthen Blackstone's position in the growing market for single-tenant lease financing, which has seen increasing demand from investors seeking stable, income-generating assets. The specific terms of the agreement, such as the exact purchase price and the timeline for the transaction, were not disclosed. However, the transaction highlights the ongoing trend of alternative asset managers, like Blackstone, expanding their footprint in the commercial real estate lending space.