Greystone announced Thursday the closing of a $450 million commercial real estate collateralized loan obligation (CRE CLO), which the company said is the largest healthcare CLO in the industry’s history. The financing is based exclusively by bridge loans, primarily on long-term care properties.
Greystone CRE Notes 2021-HC2 Ltd. is Greystone’s fifth CRE CLO and second consisting solely of healthcare assets, particularly in senior living (independent living, assisted living and memory care) communities and skilled nursing facilities. The first one closed in 2018. Skilled nursing properties make up 51.9% of the new CRE CLO portfolio, with assisted living properties representing 16.3%.
This collateral pool for Greystone CRE Notes 2021-HC2 Ltd. is 25 whole loans and three participations totaling $403 million that Greystone originated, secured by mortgages on 28 properties in 15 states. The private national commercial real estate finance company said it will invest the remaining $46 million in proceeds over the next 180 days into comparable mortgage loan assets. The actively managed CRE CLO has a three-year reinvestment period.
“Despite a softening in the market over the past two months, this latest CRE CLO performed well and had strong demand from investors who recognize the strength of real estate supporting the healthcare and senior housing sector,” said Ross Gusler, senior vice president of corporate finance and capital markets.
Gusler added that Greystone expects its capital markets offerings to continue to grow.
