Greystone Closes $425 Million Healthcare CLO

March 18, 2024

Offering Comprises Loans Provided by Bridge Lending Platform Greystone Monticello

Greystone announced the closing on March 15, 2024 of Greystone CRE Notes 2024-HC3, a $425 million Commercial Real Estate Collateralized Loan Obligation (CRE CLO) backed exclusively by bridge loans provided by Greystone Monticello on healthcare-related properties.

Greystone CRE Notes 2024-HC3 marks Greystone’s sixth overall CRE CLO and the industry’s third-ever CRE CLO comprised 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. This latest collateral pool for Greystone CRE Notes 2024-HC3 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.

Ross Gusler Greystone
Ross Gusler, Managing Director of Corporate Finance and Capital Markets at Greystone

“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. “Greystone’s consistent performance as a high-quality issuer and experienced participant in the CLO space has enabled us to create value for our investors and partners.”

To date, Greystone and Greystone Monticello’s combined Bridge-to-Agency (including Fannie Mae, Freddie Mac, and HUD) lending platform has provided over $18 billion in short-term bridge loans across the healthcare and multifamily sectors. As the #1 provider of HUD loans for commercial properties* and the #4 overall Agency lender for Fannie Mae and Freddie Mac multifamily loans, Greystone’s active participation in the broader commercial mortgage market extends beyond providing debt to include sales advisory services, CRE asset management, and ownership/operational activities.

Goldman Sachs & Co. LLC served as the sole structuring agent of Greystone CRE Notes 2024-HC3. Atlas SP Securities, a division of Apollo Global Securities, LLC, J.P. Morgan Securities LLC, UBS Securities LLC, and Wells Fargo Securities LLC served as co-lead managers and joint bookrunners. Capital One Securities, Inc. and Huntington Securities, Inc. served as co-managers.

*For HUD’s 2023 fiscal year. Based upon combined firm commitments of Greystone Funding Company LLC and Greystone Servicing Company LLC. 

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.