The company has just finished divesting itself of most of itshealth care assets in a $1 billion sale to Omega. That move,though, should not be interpreted to mean the company is exitingthe category, which includes assisted living, skilled nursing andsenior housing, Gilleland tells GlobeSt.com. Instead it will focusits fire power on health care first mortgage lending. In fact nextyear it plans to invest between $200 million to $300 million insuch a manner.

GlobeSt.com: CapitalSource has gone through some changesover the pastfew years. Can you walk me through those to explainhow you got toyour current strategy?

Gilleland: Sure, we launched in December 2000 andstarted focusingmore on health care in 2002. We were classified asa REIT in January2006 and then we de-REITed in January 2009. We didthat because inJuly 2008 we acquired Fremont Investment, which atthe time had $5billion in deposits. Under US law, you know, a bankholding companycannot hold a REIT. So we are morphing into a bankholding company –right now we are still considered a small financecompany, though,until we wind down that part of our portfolio.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.