Castlelake is entering the commercial real estate collateralized loan obligation market with a $1.1B issuance.
Castlelake is backing the offering with collateral interests secured by 26 properties with an aggregate principal balance of $1.1B in floating-rate senior loans.
The portfolio includes bridge loans for multifamily, industrial, hospitality, self-storage and student housing assets. CLO issuance has been elevated since 2025 and has grown as property owners leverage short-term and bridge loans to weather higher debt service costs before interest rate relief eventually arrives.
Private-label CMBS and CRE CLO issuance is up 18% year-over-year and totaled $137B at the end of September, according to the Commercial Real Estate Finance Council.