BofA Said to Sell $880 Million of Commercial Mortgage Loans

Bank of America Corp. (BAC) agreed to sell about $880 million in commercial mortgages to a venture of Square Mile Capital Management LLC, Invesco Ltd. (IVZ), and a fund managed by Canyon Capital Realty Advisors LLC, according to a person with knowledge of the deal.

The lender is selling the portfolio at a discount of about 20 percent to 25 percent from face value, said the person, who asked not to be identified because the transaction is private. The loans are backed by buildings in 12 states, and about three- quarters of them are performing, the person said.