Greystone made news at NIC when it announced it sold a five-property senior living portfolio to Hong Kong-based Chevalier International Holdings Ltd. Previously owned by a publicly-traded REIT, the portfolio consists of 570 total units in New Mexico and Washington state that were built or renovated between 1989 and 2003. It was part of a larger portfolio, which saw four other properties sold in July in Nebraska (1) and Oregon (3), also to Chevalier. In both transactions, The Avamere Family of Companies was brought in to lease the properties, which may include one more property expected to sell next month. Mike Garbers and Cody Tremper of Greystone represented the REIT seller in transaction. From what we hear, Greystone will have a record year for senior care sales.
Greystone made other news last week with its announcement of a $300 million collateralized loan obligation (CLO) pool, representing the first ever comprised solely of seniors housing and care assets. Of the $300 million, $249.2 million has already been put to work with 20 whole loans secured by mortgages on 25 skilled nursing, assisted living and independent living properties in 12 states. The remaining $50.8 million will be funded in the next 120 days. The CLO will be actively managed with assets moving in and out of it over a three-year time period. This CLO is on top of their recently-closed $750 million debt fund to be used to widen their capacity for bridge-to-agency loans.
And if this is not enough, a newly created division has been created to start buying skilled nursing facilities and leasing them to third-party operators. It looks like Greystone is betting that the bottom in the SNF business is near, making it a good time to buy. They are not alone.
