Greystone, a leading national commercial real estate finance company, has provided $27,325,000 in total Fannie Mae Delegated Underwriting & Servicing (DUS®) financing for a two-property portfolio in Greensboro, North Carolina. The financing was originated by Justin Hechler, Director at Greystone, on behalf of repeat client Featherstone Partners.
Terrace Oaks, which comprises 120 units, and Terrace at Olde Battleground, comprising 156 units, both received 10-year, fixed-rate Fannie Mae loans with 35-year amortizations and the first six years of interest-only payments. Both properties boast amenities including swimming pools and fitness centers, while the larger community, Terrace at Olde Battleground, additionally offering a playground, car wash station, dog park and wash station, and picnic area with fire pit.
In addition to these two refinancing transactions, Hunter Bowling of Cushman & Wakefield represented Featherstone Partners in the sale of Madison Woods, also located in Greensboro.
“Exiting the portfolio’s existing debt all at once by way of three separate transactions was tricky due to the current capital markets environment -- having a thorough understanding of the mechanics that went into each step, along with having great financing partners like Greystone, made all the difference,” said Chuck Patty, Managing Partner, Featherstone Partners.
“It takes a true collaboration with clients to close financing so quickly, and the Featherstone team was prepared and responsive, enabling our team to guide them to closing in 28 days,” said Mr. Hechler. “It’s also a testament to our commitment to clients when we have repeat borrowers return for new financing with Greystone.”
Greystone Closes the Only Healthcare Construction Loan Approved by HUD in the Past Year;
Long Island’s South Shore Will Be Enhanced with a New, Stunning Advanced Care-Memory Community
A historic homestead in Long Island’s Bay Shore will be the site of a new Assisted Living and Memory Care community financed by a HUD-insured loan from Greystone, a leading national commercial real estate finance company. This transaction marks the only Healthcare construction loan in the United States approved by HUD in 2022, at $25,193,000, having overcome obstacles caused by the Covid-19 pandemic and overall market volatility.
Originated by Greystone’s Lisa M. Fischman, the long-term construction-to-permanent financing converts from a construction loan to a 40 year, fully amortizing, non-recourse, fixed, low-rate loan. The project owners, Charles Ferraro and Nicholas Racanelli, recognized the south shore market as being underserved with quality Assisted Living and Memory Care services, and developed a plan to reimagine the original Gulden’s Mustard family homestead, Netherbay, into a state-of-the-art care facility that preserves the character of the 1800s mansion and estate grounds. The unique look will mirror the unique services as Netherbay will be licensed to allow seniors with memory conditions to age in place; never having to be transferred to an alternate care facility.
Netherbay at Bay Shore will include 72 individual rooms dedicated to Memory Care, and advanced Assisted Living residents. Operated by Meridian Senior Living, residents will benefit from the property manager’s Montessori “Moment in Time” principles, which applies hands-on interventions and rehabilitation for residents. Amenities will include boutique communal dining and lounging spaces, an outdoor garden and walking area, a pavilion for outdoor entertainment, and on-site recreational spaces. Netherbay will be located in the heart of bustling Bay Shore, near Lawrence Lake, the marina, between Good Samaritan University Hospital and South Shore University hospital, local shops and bakeries.
“Over the last several years, it has been a journey in patience and perseverance to see the successful close of this financing, which will enable Mr. Ferraro and Mr. Racanelli to provide critical Memory Care services in a warm, neighborhood environment that respects the beauty and charm of Bay Shore and the history of the original site on which it will proudly stand,” said Ms. Fischman. “Due to the tremendous impact Covid-19 had on New York, it took additional time and data to assure HUD that this was a wise and viable project. Knowing that one of the owners, Mr. Racanelli, is also the General Contractor, Racanelli Construction, was a factor in their affirmative decision.“
“Aside from the fact that the world changed from Covid-19 through this process, we take our responsibility to residents even more seriously and are dedicated to ensuring that Netherbay at Bay Shore provides the highest level of services in an idyllic setting that pays homage to the Gulden family and everything that makes Long Island’s south shore a forever destination,” said Mr. Ferraro, principal of the borrower.
Greystone, a leading national commercial real estate finance company, has provided a $26.7 million Fannie Mae Delegated Underwriting and Servicing (DUS®) loan for the acquisition of a 250-unit multifamily property in Hampton, Georgia. The financing was originated by Richard Kourbage, Managing Director at Greystone, on behalf Atlanta-based Inspired Real Estate Partners (IREP).
Lakeside Villas Apartment Homes, constructed in 2002, sits on 23.09 acres and consists of 13 three-story residential buildings. The property contains one-, two-, and three-bedroom units with amenities including a community clubhouse, fitness center, business center, in-ground swimming pool, pool house, grill stations, playground, dog park, car care area, and covered parking.
The Fannie Mae financing includes a seven-year term at a fixed rate.
“Greystone is both a multifamily finance expert and a local market expert, helping us to navigate interest rate dynamics and a comprehensive underwriting process,” said Jeremy Furman, IREP Co-Founder. “We appreciate the white-glove approach to deal financing, and look forward realizing the potential of this long-term investment.”
“There are multiple options for acquisition financing today with Agency financing, despite recent market volatility, and particularly for value-add properties such as Lakeside Villas,” said Mr. Kourbage. “It was a pleasure working with IREP on their first acquisition as a new company for them, and I congratulate them on this exciting acquisition.”
IREP Co-Founder Brooks Castellaw added, “Lakeside Villas represents our first acquisition since getting started in March 2023. Having owned the asset before, we are very familiar with the property and the submarket. Lakeside Villas fits our business plan of buying well built, suburban multifamily properties in the Sunbelt, with modern floor plans, oversized units, direct access garages and a full amenity set.”
Greystone Monticello, a bridge lending platform intended to serve as a one-stop-shop provider of capital finance products and services for the multifamily and senior housing sectors, has provided bridge financing towards the $150 million acquisition of a portfolio of eight Supportive Living Facilities (SLF) located across the state of Illinois. Greystone Senior Managing Director Eric Rosenstock worked with both the buyer and the seller on this transaction and originated the bridge financing.
The portfolio of eight SLF properties were financed with a two-year bridge loan and are intended to transition to long-term, fixed-rate financing with Greystone. Comprising 921 total beds, the facilities are located in Elk Grove, Melrose Park, Country Club Hills, Bartlett, Vernon Hills, and Chicago. The Supportive Living Program in Illinois is an alternative to nursing home care for low-income older persons requiring mid-range care needs as opposed to skilled nursing.
“The Supportive Living Facility program fills a gap in much-needed services for affordable seniors housing in Illinois. Greystone Monticello’s experience in this asset type means our firm is well-positioned to bring together buyers and sellers through creative financing structures and advantageous exit solutions,” said Mr. Rosenstock. “Greystone’s bridge-to-Agency/HUD platform is just one of the many ways we help clients in seniors housing, skilled nursing and supportive living spaces get the most out of their portfolios and provide quality housing solutions to their residents.”
Total Financing Structure Includes $135 Million Senior Loan and $37 Million Mezzanine Loan
Greystone and Affinius Capital LLC (“Affinius Capital”) announced the closing of a $135.0 million mortgage loan in connection with the refinance of Rise Koreatown, a newly constructed, seven-story, Class A, mixed-use residential complex featuring 363 multifamily residences and 47,417 square feet of retail space situated on a 2.26-acre site in the heart of Koreatown, the most densely populated submarket of Los Angeles. The property was developed by Rescore Property Group, a private REIT and affiliate of Encore Capital Management.
The transaction was closed via a syndicated funding by Greystone Commercial Capital, which originates institutional structured commercial mortgage loans including subordinate debt for all major property types, in partnership with Affinius Capital. The financing was comprised of the $135,000,000 first mortgage senior loan in conjunction with a $37,000,000 mezzanine loan provided by a pension fund.
“The bridge loan serves as a construction take-out and features the option of a Greystone permanent Agency financing upon stabilization,” said Scott Chisholm, President and Chief Investment Officer of Greystone Commercial Capital. “We are excited to both expand our enduring relationship with the Affinius team and, in partnership, serve our mutual client Rescore.”
Affinius Capital Managing Director Tom Burns commented, “I believe Rise Koreatown, which delivered in February 2023, is a high-quality asset that has been well received by the market and is leasing up well. The Koreatown submarket and Los Angeles as a whole have experienced strong rent growth coupled with high occupancy rates. We are pleased to continue our relationship with Rescore.”
Images can be found here.
About Greystone
Greystone is a private national commercial real estate finance company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC and/or other Greystone affiliates. For more information, visit www.greystone.com.
About Affinius Capital LLC
Affinius Capital (previously known as USAA Real Estate and Square Mile Capital Management) is an integrated institutional real estate investment firm focused on value creation and income generation. With a 40-year track record and $34 billion in net assets under management, Affinius has a diversified portfolio across North America and Europe delivering both equity and credit to its trusted partners and on behalf of its institutional clients globally. For more information, visit affiniuscapital.com.
Greystone, a leading national commercial real estate finance company, has provided a $42,257,000 Fannie Mae Delegated Underwriting & Servicing (DUS®) loan for a 286-unit multifamily property in Louisville, Kentucky. The financing was originated by Anthony Cristi, Managing Director at Greystone, on behalf of 800 City Apartments LLC.
Constructed in 1963, 800 Tower Apartments in Jefferson County is a 29-story high-rise building offering studios, as well as one- and two-bedroom units. The $42,257,000 non-recourse, fixed-rate financing carries a ten-year term and 30-year amortization, with three years of interest-only payments.
“At Greystone, we work through the nuances of every project to ensure that our clients get financing that helps them achieve their vision for their property,” said Mr. Cristi. “Greystone’s extensive multifamily lending platform and industry expertise means we deliver solutions where others fall short.”
“Our Greystone team’s creativity and diligence resulted in a financing solution that addressed all of our needs,” said Mr. Mordichai Weiss, principal of the borrower. “The experience was exceptional at every phase of the transaction and we look forward to working with them in the future.”
