Castlelake Debuts in CRE CLO Market with $1.1 Billion Issuance

The collateral pool consists of 26 floating-rate senior loans tied to a mix of industrial, multifamily, hospitality, self-storage, and student housing properties. Armin Rothauser, partner of capital markets, noted the issuance underscores the firm’s credibility in asset-based finance, a sector where the company has maintained an active presence for two decades. Alan Gearing, partner of North American commercial real estate, added that the portfolio emphasizes disciplined underwriting to provide bridge financing solutions in an evolving lending environment.

The deal features six note classes, with the $636.51 million Class A tranche receiving top-tier ratings of AAAsf from Fitch and Aaa(sf) from Moody's. Santander served as the sole structuring agent, with Morgan Stanley and Goldman Sachs acting as joint bookrunners. This transaction follows the firm's August 2026 residential mortgage-backed security issuance, bringing Castlelake’s total asset-backed securities volume to roughly $11 billion across various markets since 2014.