Greystone Closes $425M Healthcare CLO
Greystone has closed a $425 million CRE CLO that is backed exclusively by bridge loans provided by Greystone Monticello on healthcare-related properties.
The transaction marks Greystone’s sixth overall CRE CLO and the industry’s third-ever CRE CLO composed solely of healthcare assets, particularly skilled nursing, assisted living, memory care, and independent living facilities, the first two being closed by Greystone in 2018 and 2021.
The collateral pool for this latest healthcare CLO comprises 13 whole loans and 9 participations totaling $397 million that Greystone originated, secured by mortgages on 51 properties in 19 states. Skilled nursing properties make up a majority of the portfolio, with 76.5%, followed by assisted living, with 8.7%. Greystone will invest the remaining $28 million of CRE CLO proceeds over the next 180 days into comparable mortgage loan assets. This actively managed CRE CLO has a 2-year reinvestment period.
“We have seen tightening in the capital markets over the past six to twelve months and this CLO created a compelling opportunity for investors to participate in a proven, industry-leading lending platform with significant upside as the economy continues to improve,” said Ross Gusler, Managing Director of Corporate Finance and Capital Markets at Greystone, in prepared remarks.
To date, Greystone and Greystone Monticello’s combined Bridge-to-Agency lending platform, which includes Fannie Mae, Freddie Mac, and HUD, has provided over $18 billion in short-term bridge loans across the healthcare and multifamily sectors.
Source: GlobeSt.
