Private equity firm Pretium Partners, one of the most active issuers of mortgage-backed securities in the country, may be backing off its latest mortgage-backed bond offering.
Fitch Ratings on Thursday withdrew its preliminary ratings and outlooks for Progress Residential 2025-SFR3, a proposed $778.5 million offering backed by 2,020 single-family rental units, saying that "the transaction is no longer expected to proceed."
Progress Residential is a wholly owned subsidiary of Pretium Partners. The firm declined CoStar News' request for comment.
Bond offerings can be pulled from the market for a number of reasons, including such things as unfavorable pricing in the market, weak investor demand or uncertainty about specific properties backing the offering.
One of the last offerings to be taken back occurred last summer when Morgan Stanley Capital withdrew a $1.28 billion offering backed by a Blackstone-owned portfolio of 62 industrial properties. That withdrawal followed what one analyst called an oversaturation of commercial mortgage-backed securities offerings that hit the market all at once.
If the Progress Residential deal fails to go forward, it would be the first identified mortgage-backed deal to do so since the Trump administration’s imposition of tariffs that have roiled markets worldwide. The bond-rating firm KBRA said several transactions it was in the process of rating — totaling about $17.5 billion — had been placed on hold as markets weigh the effects of the administration's actions on the economy.
KBRA did not identify individual deals. The firm had also issued preliminary ratings on Progress Residential’s third single-family rental offering of the year. It's unclear whether the firm plans to move forward with formal ratings. KBRA analysts did not respond to a request for comment.
Fitch’s withdrawal of preliminary ratings on Progress Residential 2025-SFR3 came less than two weeks after Pretium Partners completed an offering of another Fitch-rated deal, Progress Residential 2025-SFR2, which involved a $656 million refinancing by Goldman Sachs.
Goldman Sachs also planned to originate Progress Residential's latest $778.5 million loan. The deal had originally been scheduled to close next week, according to KBRA’s preliminary analysis. The latest transaction would have been the 45th single-family rental securitization backing Pretium Partners’ inventory of about 97,000 single-family homes. The previous 44 offerings totaled $25.5 billion, according to Fitch and KBRA.
Representatives of Progress Residential and Goldman Sachs did not respond to requests for additional information.