Greystone on Thursday announced the closing of a $ 450 million commercial real estate secured loan bond (CRE CLO), which the company says is the largest healthcare CLO in history. industry. The financing is based exclusively on bridging loans, mainly on long-term care buildings.
Greystone CRE Notes 2021-HC2 Ltd. is Greystone’s fifth CRE CLO and the second comprised solely of healthcare assets, particularly in senior living communities (independent living, assisted living and memory care) and skilled nursing facilities. The first closed in 2018. Residences for qualified seniors represent 51.9% of the new CRE CLO portfolio, with assisted living facilities representing 16.3%.
This pool of guarantees for Greystone CRE Notes 2021-HC2 Ltd. consists of 25 whole loans and three equity interests totaling $ 403 million generated by Greystone, secured by mortgages on 28 properties in 15 states. The national private commercial real estate finance company said it would invest the remaining $ 46 million of proceeds over the next 180 days in comparable mortgage assets. The actively managed CRE CLO has a three-year reinvestment period.
âDespite a market slowdown over the past two months, this latest CRE CLO has performed well and has generated strong demand from investors who recognize the strength of real estate supporting the healthcare and senior housing sector. ” noted Ross Gusler, senior vice president of corporate finance and capital markets.
Gusler added that Greystone expects its offerings in the capital markets to continue to grow.