The Blackstone Group is tapping the commercial mortgage bond market to refinance a second portfolio of health sciences office and laboratory properties.

Entities controlled by the Blackstone Real Estate Partners VIII fund obtained an $825 million interest-only, nonrecourse loan on the portfolio from Citi Real Estate Funding, Deutsche Bank and Barclays. Proceeds, along with $500 million in mezzanine debt taken out by Blackstone, are being used to refinance $1.1 billion of balance sheet debt as well as allowing the sponsor to cash out $207.8 million in equity.

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