May 17 Reuters Washington Federal Bank agreed on Friday to sell a portfolio of commercial multifamily real estate loans to Bank of America for about 2.9 billion, helping the regional lender cut its exposure to the troubled sector.

The commercial real estate CRE sector, which has been roiled by higher borrowing costs and lower occupancy, has become a key cause of concern for investors and has drawn tough regulatory scrutiny for regional lenders.

Parent company WaFd, in a regulatory filing, disclosed the portfolio of 2,000 commercial multifamily real estate loans had an aggregate unpaid principal balance of 3.2 billion.

After the deal is closed, WaFd said BofA is planning to enter into a structured transaction or loan sale with one or more funds of Pacific Investment Management.

WaFd shares were marginally up in morning trading on Friday. The stock is down around 9 so far this year.

Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri

Source Reuters