Greystone Sells Long Island City Multifamily Development

30 January 2019
Queens Plaza South NYC Rendering

Greystone’s Debt Advisory Group Marketed and Secured Bank Financing for Acquisition by Silverback Development and AEW Capital Management

Greystone Development, a New York-based real estate development company, today announced it has sold the residential component of 24-16 Queens Plaza South in Long Island City for an undisclosed amount. Drew Fletcher, head of Greystone’s capital markets advisory team, negotiated the sale on behalf of Greystone Development and arranged the acquisition financing for the purchaser, a joint-venture between affiliates of Silverback Development and AEW Capital Management. The sale closed on January 28th.

The development is currently 60% complete, with Silverback stepping in to complete construction and convert the project from a multifamily rental apartment building into for-sale condominiums targeted to buyers looking to take advantage of the tremendous growth in Long Island City. Mr. Fletcher’s team, including Matthew Hirsch and Matthew Klauer, arranged a $54 million acquisition and construction loan from Benefit Street Partners for the completion and stabilization of the project. The project was grandfathered under the prior 421a tax abatement program, which provides a tax exemption for a construction period of up to three years followed by a 15-year-long tax exemption period post-construction.

“Working on behalf of Silverback and AEW to secure financing for this acquisition has been a pleasure, especially since the asset has been in Greystone’s portfolio since 2016. It’s truly a phenomenal investment with all there is to come for this neighborhood,” said Mr. Fletcher.

“We are thrilled to have taken part in the shaping of Long Island City into a residential destination, and have truly enjoyed the challenges and satisfaction of a conversion from a utilitarian commercial space to a lifestyle oasis that hundreds of residents will call home,” said Thomas Ryan, head of Greystone Development. 

Originally acquired in 2016, Greystone completed a significant conversion from an existing five-story Post Office building dating back to 1925 into a 23-story tower with 109 residential units. Greystone worked in collaboration with architectural firm Woods Bagot to design a striking undulating façade that complements the burgeoning Long Island City skyline. Located adjacent to several subway lines, the project offers both convenience and a unique, fluid perspective in a sea of sharp angles, as well as a thoughtfully-designed amenities package.  

“The design merges the heritage of the existing building with a contemporary tower above it. With Amazon having now chosen to call Long Island City home, this dynamic mix of historic and forward-looking architecture will be a strong contributor to the neighborhood,” Jeremy Singer, managing principal of Woods Bagot’s New York studio.