Greystone Closes $900 Million CRE CLO
Majority Multifamily Offering Highlights Strength in Capital Demand for Apartment Financing
Greystone announced the closing on August 10, 2021, for Greystone CRE Notes, 2021-FL3 Ltd., a $900 million Commercial Real Estate Collateralized Loan Obligation (CRE CLO) backed exclusively by bridge loans on primarily multifamily properties.
Greystone CRE Notes, 2021-FL3 Ltd. is the company’s fourth CRE CLO. The initial collateral pool for 2021-FL3 consists of 20 whole loans and 10 loan participations totaling $722.8 million that Greystone originated. The loans are secured by mortgages on 39 properties in 13 states. Greystone will invest the remaining $177.2 million of CLO proceeds over the next 180 days into comparable mortgage loan assets. The CRE CLO provides accretive financing at a weighted average coupon at issuance of L+1.32%, a record pricing for a 3-year managed CRE CLO transaction.
“We are thrilled that the market has been receptive to CRE CLOs to date in 2021, as we have a quality collateral pool built up from the demand of our growing bridge lending platform, which is seeing a two-fold increase in activity over the last year,” said Ross Gusler, Senior Vice President of Corporate Finance and Capital Market Finance at Greystone. The firm continues to build its bridge-to-Agency lending platform as additional support to the company’s top-ranked government-backed permanent lending solutions, with over $2 billion in short-term bridge loans already provided to borrowers through Q2 2021. “The overwhelming demand for this CRE CLO transaction exhibits Greystone’s strengths as a multifamily capital provider and asset manager, and we are gratified to have completed our largest CRE CLO to date as the market continues its recovery,” Gusler added.
The three-year actively managed CRE CLO offered six classes of notes rated investment grade, including a $502.9 million Class A tranche rated Aaa by Moody’s and Kroll Bond Rating Agency. In total, the investment grade offered bonds represented 83% of the $900 million of fully ramped collateral mortgages.
Greystone’s active participation in the broader multifamily market extends beyond mortgage lending to include sales advisory services, CRE asset management, and ownership/operational activities. The company is the #1 provider of HUD loans for commercial properties* and is a top 10 Fannie Mae and Freddie Mac multifamily lender.
Wells Fargo Securities, LLC, acted as sole structuring agent, and J.P. Morgan Securities LLC, UBS Securities LLC, and Goldman Sachs were co-lead bookrunners and placement agents of Greystone CRE Notes 2021-FL3, Ltd. 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.