Castlelake Prices $1.1 Billion CRE CLO Amid Market Disruption
Castlelake, L.P. has priced its first commercial real estate collateralized loan obligation (CRE CLO), CLCRE 2026-FL1, with a total value of approximately $1.1 billion. The transaction is intended to finance a diversified portfolio of commercial real estate loans and was executed amid ongoing disruption in the CRE market due to rising interest rates. The collateral pool consists of 26 interests secured by 26 properties, including multifamily, industrial, hospitality, self-storage, and student housing bridge loans. Castlelake emphasized its long-standing experience in CRE credit and highlighted disciplined underwriting as a key factor behind the successful issuance. The CLO includes six note classes with varying ratings from Fitch and Moody's. Castlelake has expanded its capital markets program into commercial real estate following this transaction, which complements its recent residential mortgage-backed security (RMBS) offering in August 2026. Santander served as the sole structuring agent alongside Morgan Stanley and Goldman Sachs.
Topics: Alternative Investments CLO issuance Commercial Real Estate