Planning, Strategizing, and Anticipating: Bringing a CRE CLO to Market

This article was originally published in The Journal of Structured Finance. Any opinions in this article are not those of Winston & Strawn or its clients. The opinions in this article are the authors’ opinions only. 

In recent years, commercial real estate collateralized loan obligations (CRE CLOs) have provided CRE CLO sponsors an important financing alternative for transitional properties, one that is nonrecourse to the CRE CLO sponsor, generally offers better match-term funding, and largely eliminates mark-to-market risks for the CRE CLO sponsor.

In their article for The Journal of Structured Finance, Winston Partner Dennis Kelly discuss basic structural and process considerations relating to the execution of a CRE CLO transaction, focusing on several key differences between CRE CLOs and more-standard CLOs, with a particular emphasis on the tax analysis.

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