Principal, US Bank Form CMBS Platform

Principal Real Estate Investors, Des Moines, Iowa, and U.S. Bank NA, Minneapolis, have announced the formation of Principal Commercial Funding II to serve as their commercial mortgage-backed securities platform.The new company will focus on securitizing commercial mortgages originated by the two companies on its behalf, the companies said. "This is a landmark agreement that sets a new precedent in the CMBS world," said Pat Halter, chief executive officer of Principal Real Estate Investors, the real estate investment arm of Principal Global Investors. "This arrangement will allow Principal Real Estate Investors and U.S. Bank to leverage their independent and complementary strengths to create a nationwide platform unparalleled in the industry."