Key Takeaways
- • Castlelake priced CLCRE 2026-FL1, a approximately $1.1 billion commercial real estate CRE CLO, marking the firm's entry into the CRE CLO market.
- • The collateral pool comprises 26 floating-rate senior loans secured by 26 commercial properties, with an aggregate principal balance of approximately $1.1 billion.
- • Six note classes were offered, led by $636.51 million of Class A Notes rated AAAsf by Fitch and Aaa(sf) by Moody's.
- • Santander served as Sole Structuring Agent, with Morgan Stanley and Goldman Sachs as Co-Lead Managers and Joint Bookrunners.
- • Castlelake reports approximately $11 billion in ABS issued across CRE, RMBS, specialty finance and aviation since 2014, including the CLRES 2026-RTL1 residential deal issued in August 2026.
Summary
Castlelake, L.P., a global alternative investment firm specializing in asset-based private credit, announced that it priced CLCRE 2026-FL1, a commercial real estate collateralized loan obligation (CRE CLO) totaling approximately $1.1 billion, according to a PR Newswire release. The transaction will finance a diversified pool of commercial real estate loans and was priced amid disruption in the commercial real estate market driven by a sharp rise in interest rates.
At pricing, the initial collateral pool consisted of 26 collateral interests secured by 26 commercial properties, with an aggregate principal balance of approximately $1.1 billion of floating-rate senior loans. The portfolio includes multifamily and industrial bridge loans as well as hospitality, self-storage and student housing bridge loans.
The deal consists of six offered note classes: $636.51 million of Class A Notes rated AAAsf by Fitch and Aaa(sf) by Moody's; $109.74 million of Class A-S Notes rated AAAsf by Fitch; $79.56 million of Class B Notes rated AA-sf by Fitch; $64.48 million of Class C Notes rated A-sf by Fitch; $38.41 million of Class D Notes rated BBBsf by Fitch; and $19.21 million of Class E Notes rated BBB-sf by Fitch.
According to Armin Rothauser, Partner, Capital Markets at Castlelake, the transaction marks the firm's entry into the CRE CLO market and an expansion of its capital markets program into commercial real estate credit, an area where Castlelake has been active for roughly two decades. Alan Gearing, Partner, North American Commercial Real Estate at Castlelake, said the firm sees attractive opportunities to provide bridge financing to credible commercial real estate assets as borrowers navigate an evolving lending environment.
The release also noted that, together with Castlelake Residential Mortgage Trust 2026-RTL1 (CLRES 2026-RTL1), the firm's first residential mortgage-backed security issued in August 2026, funds and investment accounts managed by Castlelake have issued approximately $11 billion in ABS across CRE, RMBS, specialty finance and aviation markets since 2014.
Santander is Sole Structuring Agent, Co-Lead Manager and Joint Bookrunner, alongside Morgan Stanley and Goldman Sachs as Co-Lead Managers and Joint Bookrunners. Situs Asset Management LLC is expected to serve as servicer and Situs Holdings LLC as special servicer, Computershare Trust Company, National Association as note administrator and custodian, Hogan Lovells Cadwalader US LLP as legal counsel to Castlelake, and KPMG for tax guidance. Castlelake, founded in 2005, manages approximately $40 billion and is a strategic partner of Brookfield Asset Management.
At pricing, the initial collateral pool consisted of 26 collateral interests secured by 26 commercial properties, with an aggregate principal balance of approximately $1.1 billion of floating-rate senior loans. The portfolio includes multifamily and industrial bridge loans as well as hospitality, self-storage and student housing bridge loans.
The deal consists of six offered note classes: $636.51 million of Class A Notes rated AAAsf by Fitch and Aaa(sf) by Moody's; $109.74 million of Class A-S Notes rated AAAsf by Fitch; $79.56 million of Class B Notes rated AA-sf by Fitch; $64.48 million of Class C Notes rated A-sf by Fitch; $38.41 million of Class D Notes rated BBBsf by Fitch; and $19.21 million of Class E Notes rated BBB-sf by Fitch.
According to Armin Rothauser, Partner, Capital Markets at Castlelake, the transaction marks the firm's entry into the CRE CLO market and an expansion of its capital markets program into commercial real estate credit, an area where Castlelake has been active for roughly two decades. Alan Gearing, Partner, North American Commercial Real Estate at Castlelake, said the firm sees attractive opportunities to provide bridge financing to credible commercial real estate assets as borrowers navigate an evolving lending environment.
The release also noted that, together with Castlelake Residential Mortgage Trust 2026-RTL1 (CLRES 2026-RTL1), the firm's first residential mortgage-backed security issued in August 2026, funds and investment accounts managed by Castlelake have issued approximately $11 billion in ABS across CRE, RMBS, specialty finance and aviation markets since 2014.
Santander is Sole Structuring Agent, Co-Lead Manager and Joint Bookrunner, alongside Morgan Stanley and Goldman Sachs as Co-Lead Managers and Joint Bookrunners. Situs Asset Management LLC is expected to serve as servicer and Situs Holdings LLC as special servicer, Computershare Trust Company, National Association as note administrator and custodian, Hogan Lovells Cadwalader US LLP as legal counsel to Castlelake, and KPMG for tax guidance. Castlelake, founded in 2005, manages approximately $40 billion and is a strategic partner of Brookfield Asset Management.
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