PacWest Bank to Sell $2.7B in Real Estate and Construction Loans.
Pacific Western Bank is selling $2.6bn in construction loans to Kennedy-Wilson Holdings at a discounted price of $2.4bn. The deal is expected to close in tranches beginning during this quarter and rolling into the next. Kennedy-Wilson will also be assuming the future funding obligations, a total of $2.7bn. The Kennedy-Wilson deal makes a dent in PacWest’s loan book, which held $4.6bn in construction loans across residential and commercial properties in the first quarter.