Principal Capital Management, a unit of insurance giant Principal Financial Group, closed its first commercial mortgage securitization this month, a $594 million offering backed by retail, industrial, multifamily, and office mortgages.

The Principal unit contributed 57% of the collateral for the securities. The conduit operations of John Hancock and Morgan Stanley Dean Witter also provided loans for the pool.

Morgan Stanley acted as lead underwriter.

Principal entered the commercial mortgage conduit business a year ago. It says it expects to originate $750 million to $1 billion in loans a year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.