Joseph Iacono, CEO and managingpartner at Crescit Capital Strategies

NEW YORK CITY–Earlier this Spring Kroll Bond Rating Agencyassigned preliminary ratings to a CRE collateralized loanobligation that LoanCore Capital Markets was taking to themarket. It was backed by an eye-popping $1.1 billion in firstmortgages secured by a mix of 33 properties consisting ofmultifamily, office, mixed-use, industrial, hospitality and retailassets. For the two or so years prior, CRE CLOs had started to comeback to the market, but the size of this deal — and to a lesserextent, its 24-month reinvestment period — brought some observersup short. The CRE CLO market, it had suddenly become clear, wasback. Now, as it continues to grow it will have ramifications forborrowers and lenders.

This is not to say that CRE CLOs are anywhere close to theirheyday before the recession. In 2007 and 2008 issuance was around$35 billion a year. The first vehicles to remerge after thefinancial crisis were in 2016 when between $2 billion to $2.5billion of CLOs were issued, according to stats from Wall Streetinvestment banks. Last year issuance was around $8 billion and thisyear estimates are that between $13 billion and $18 billion will beissued.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from 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 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.