Cross River Advances Funding Strategy With Landmark CMBS Securitization
Cross River has completed a milestone $288 million commercial mortgage-backed securities (CMBS) transaction, marking one of the first instances of a technology-driven bank bringing a seasoned pool of commercial real estate loans to the securitization market. The deal converts the bank’s existing commercial real estate portfolio into bonds sold to a broad base of institutional investors, enabling more efficient capital deployment.
The transaction reflects Cross River’s evolving balance-sheet strategy as it accelerates diversification beyond traditional deposit funding. By recycling existing assets into a capital markets structure, the bank both broadens its liquidity sources and strengthens its ability to originate new loans through the Commercial Banking Group.
and Sole Bookrunner, with Greystone Structured Products advising on transaction design and Cadwalader, Wickersham & Taft acting as issuer’s counsel. The senior tranches received AAA ratings from Moody’s and Morningstar DBRS, reinforcing confidence in the underlying credit quality and transaction structure.
Strengthening Liquidity Through Strategic Balance-Sheet Optimization
For Cross River, securitization represents a meaningful step toward building a scalable, diversified funding platform capable of supporting growth in commercial lending. By converting whole-loan exposure into tradable securities, the bank frees regulatory capital and enhances balance-sheet efficiency, allowing for more continuous loan origination activity.
Leadership emphasized that the transaction is part of a multi-year plan to create more predictable access to institutional capital. This approach reduces reliance on deposit markets, which can be sensitive to rate cycles, and moves Cross River toward a hybrid model that integrates traditional banking with active capital markets participation.
Chief Lending Officer Shimon Eisikowicz highlighted the milestone as evidence of the bank’s ability to originate, structure, and distribute institutional-grade assets—an operating model that aligns with broader shifts in how modern commercial lenders manage funding, liquidity, and risk.
Positioning for Scalable Growth Across Commercial Lending Businesses
With this transaction, Cross River strengthens its competitive position in the commercial real estate financing ecosystem, signaling to borrowers, partners, and investors that it can originate volume while maintaining balance-sheet agility. The structure provides recurring access to long-term, that support steady expansion of the Commercial Banking Group.
Bhavik Khatri, Vice President of Syndications, noted that diversification remains central to Cross River’s long-term strategy. By tapping institutional markets, the relationships and develops repeatable channels for distributing credit exposure more efficiently.
As Cross River continues to deepen its capital markets capabilities, the successful CMBS transactions across asset classes. The ability to pair technology-enabled origination with capital-efficient funding mechanisms positions it well for sustained growth in a shifting credit and liquidity landscape.
