Greystone is having a productive final month of the year, closing a couple of transactions, including the largest-ever healthcare Collateralized Loan Obligation (CLO), Greystone CRE Notes 2021-HC2, Ltd., comprising Greystone bridge loans secured on healthcare properties. The $450 million offering marks the fifth commercial real estate CLO closed by Greystone and the second-ever comprised solely of healthcare assets. Greystone had also closed the second-largest healthcare CLO, a $300 million offering in 2018.
This latest collateral pool comprises 25 whole loans and three participations totaling $403 million that Greystone originated, secured by mortgages on 28 properties in 15 states. The majority of the properties were skilled nursing facilities, with 52% of the total, followed by assisted living with 16%. Greystone will invest the remaining $46 million of CLO proceeds over the next 180 days into comparable mortgage loan assets, and the CLO has a three-year reinvestment period.
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.
Greystone followed that up with a $30.1 million construction financing placed for a 159-unit active adult community in Holly Springs, North Carolina. The Senior Housing Capital Markets team arranged the loan on behalf of Aspens Senior Living. A regional bank in the Southeast provided the loan, which also covered land acquisition costs. The planned property will include an outdoor swimming pool, modern lounge and bistro, activity room, fitness room and wellness center, movie theater, and multiple common areas and concierge services.
With this development, the borrower grows its portfolio to five communities, with one more in development, and its total asset value topped $200 million.
