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Greystone closes industry’s largest healthcare CLO

Greystone announced the closing oof Greystone CRE Notes 2021-HC2, Ltd., a $450 million Commercial Real Estate Collateralized Loan Obligation (CRE CLO) backed exclusively by bridge loans on healthcare-related properties.

Greystone CRE Notes 2021-HC2, Ltd. marks Greystone’s fifth CRE CLO and the second-ever CRE CLO comprised solely of healthcare assets, particularly skilled nursing, assisted living, memory care, and independent living facilities, the first being closed by Greystone in 2018.

This latest collateral pool for Greystone CRE Notes 2021-HC2, Ltd. comprises 25 whole loans and 3 participations totaling $403 million that Greystone originated, secured by mortgages on 28 properties in 15 states. Skilled nursing properties make up a majority of the portfolio, with 51.9%, followed by assisted living, with 16.3%.

Greystone will invest the remaining $46 million of CRE CLO proceeds over the next 180 days into comparable mortgage loan assets. This actively managed CRE CLO has a 3-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 at Greystone. “With Greystone’s reputation as a quality issuer and our past consistent performance in the CRE CLO market, we are pleased to have attracted several new investors to this offering. We believe our capital markets offerings will continue to grow and benefit our investors and partners.”   

To date, Greystone’s Bridge-to-Agency (including Fannie Mae, Freddie Mac, and HUD) lending platform has provided over $9 billion in short-term bridge loans across the healthcare and multifamily sectors.

J.P. Morgan Securities, Goldman Sachs & Co., Wells Fargo Securities, and UBS Securities served as placement agents of Greystone CRE Notes 2021-HC2. Huntington Securities, Inc. served as a co-manager.

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