Greystone has closed the industry’s first collateralized loan obligation that consists of only healthcare assets, particularly skilled nursing, assisted-living and independent-living facilities.
The Greystone Commercial Real Estate Notes is a $300 million collateralized loan obligation backed exclusively by bridge loans on healthcare-related properties. The company is a real estate lending, investment and advisory company in multifamily and healthcare finance.
The initial collateral pool 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. It plans to invest the remaining $50.8 million of collateralized loan obligation proceeds over the next 120 days into additional loans. The three-year actively-managed collateralized loan obligation provides a new 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 Jarrell, head of Greystone’s portfolio lending group. The company offers commercial lending across a variety of platforms such as Fannie Mae, Freddie Mac, commercial mortgaged-backed securities, Federal Housing Administration, USDA, bridge, EB-5 and other proprietary loan products.
Greystone’s extensive participation in the broader seniors-healthcare market spans mortgage and mezzanine lending, management and ownership/operational advisory activities. As a Department of Housing and Urban Development 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 acted as placement agent on the transaction with U.S. Bank National Association serving as Trustee.
