Greystone Closes Industry’s First Seniors Housing CLO
October 10, 2018
Greystone announced the September 21, 2018 closing of the Greystone Commercial Real Estate Notes 2018-HC1, a $300 million CLO backed exclusively by bridge loans on healthcare-related properties.
Greystone Commercial Real Estate Notes 2018-HC1 marks the industry’s first-ever CLO pool comprised solely of healthcare assets, particularly skilled nursing, assisted-living and independent-living facilities. The initial collateral pool for 2018-HC1 comprises 20 whole loans totaling $249.2 million that Greystone originated, secured by mortgages on 25 skilled-nursing, assisted-living and independent-living facilities located in 12 states. Greystone will invest the remaining $50.8 million of CLO proceeds over the next 120 days into additional loans. The 3-year actively-managed CLO provides a never-before available financing option for the skilled nursing sector.
“Through this new CLO, Greystone has tapped into the strong demand for investment grade commercial real estate securities by introducing a first-ever healthcare transaction. We offered a combination of high credit-quality collateral with anticipated attractive returns backed by Greystone’s 18-year experience as a leading financier working with investors, owners and operators in the healthcare real estate space,” said Jeffrey Baevsky, head of Capital Market Finance at Greystone. “This latest CLO is the culmination of deliberate steps we have taken to crystalize our commitment to and leadership in the broader healthcare real estate sector.”
“As we continue on a record-breaking year of bridge financing, we are thrilled to have vehicles such as this CLO, and our recently-closed $750 million senior debt fund, to help widen capacity for bridge-to-Agency loans, a lending product where we are an industry leader,” added Mark R. Jarrell, head of Greystone’s Portfolio Lending group.
Greystone’s extensive participation in the broader seniors/healthcare market spans mortgage and mezzanine lending, management and ownership/operational advisory activities. As a top HUD lender for healthcare facilities, Greystone recently achieved record volume for its bridge loans on seniors/healthcare facilities, more than doubling last year’s volume.
J.P. Morgan Securities LLC acted as placement agent of Greystone Commercial Real Estate Notes 2018-HC1 with U.S. Bank National Association serving as Trustee.
This press release is for informational purposes only. It shall not constitute an offer to sell or a solicitation of an offer to buy any securities.