(Bloomberg) -- Morgan Stanley struck a deal to buy roughly $700 million of property loans made by the failed Signature Bank from a group including Blackstone Inc., Canada Pension Plan Investment Board and Rialto Capital, according to people familiar with the matter. 

Jones Lang LaSalle Inc. worked as an adviser on the sale, said the people, who asked not to be identified discussing private information. Representatives for Blackstone, CPPIB, and Morgan Stanley declined to comment, while spokespeople for Rialto and JLL didn’t have an immediate comment.

Last year, Blackstone and its partners acquired a stake in a joint venture with the Federal Deposit Insurance Corp. that held about $17 billion of Signature property loans. A spokesperson for the FDIC had no immediate comment about the Morgan Stanley sale.

The companies later eyed a potential sale of a slice of that portfolio, about $1.8 billion of performing loans mostly for apartments. It’s unclear what will happen to the other portion of those loans. 

Sales of Signature property loans have drawn investor interest as the market for commercial-property deals remains sluggish. Owners and lenders are grappling with higher borrowing costs and plunging valuations, and the rare transactions in the market such as the Signature loan sales have brought some clarity to exactly what some properties and their debt are worth.

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