Castlelake, a global alternative investment manager that specializes in asset-based private credit, just completed its first collateralized loan obligation (CLO) backed by commercial real estate (CRE) assets, raising $1.1 billion.
The collateral pool includes 26 collateral interests backed by 26 commercial properties, the company announced. The mortgages are composed of bridge loans on multifamily, industrial, hospitality, self-storage, and student housing bridge loans, Castlelake said.
CLCRE-FL1 will sell the notes through six tranches of class A through E notes, the company said.
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Fitch Ratings and Moody’s Ratings assigned AAA ratings to the class A notes. After that level, Fitch assigned AAA to the A-S notes; AA- to the class B notes; A- to the class C notes; BBB to the class D notes; and BBB- to the class E notes, the company said.
“We see attractive opportunities to provide bridge financing solutions to credible commercial real estate assets as borrowers navigate an evolving lending environment,” said Alan Gering, a partner of North American commercial real estate at Castlelake.
Two Situs entities, Situs Asset Management and Situs Holdings are servicer and special servicer on the deal, the company said.
