Trending Multifamily News
Greystone, a leading national commercial real estate finance company, placed a $27,050,000 regional bank loan for the refinance of Merrill Gardens at Columbia in South Carolina. Tyler Armstrong, Managing Director at Greystone, worked with the client in placing the bank loan for AEW Capital Management and Merrill Gardens.
The regional bank loan for the 120-unit independent living and assisted living community was executed as a floating rate financing carrying a 5-year term and 30-year amortization. The loan featured three-years of interest-only payments and a mid 200 bps loan spread.
“Two highly respected best in class firms like AEW Capital Management and Merrill Gardens make for an incredible partnership in the seniors housing community and capital markets space,” said Armstrong. “They are a partnership that is highly sought after from a relationship perspective with lenders across the country and we were honored to represent them in the refinance of this class A community.”
“The Greystone team has worked on our behalf through several transactions over the past year and in each case, they were able to execute above our expectations,” said Brian Sunday, Managing Director of AEW Capital Management. “The seniors housing capital markets team at Greystone continues to impress with not only their detailed and dedicated approach to each of our refinances but also the depth of their lending relationships in the market,” said Doug Spear, Chief Financial Officer of R.D. Merrill Company, parent of Merrill Gardens.
Founded in 1981, AEW actively manages portfolios in both the listed and direct property markets across the risk/return spectrum. AEW’s investment management platform spans four continents allowing clients to take advantage of opportunities across the globe. As of December 31, 2021, AEW and its affiliates have over 780 employees who manage approximately $93.0 Billion of real estate assets and securities on behalf of its 400+ institutional and private investor clients.
Merrill Gardens has been one of the premier seniors housing operators since its inception in 1993, when it purchased its first seniors housing community in Seattle, Washington. Headquartered in Seattle and privately owned, Merrill Gardens has a strong regional presence along the West Coast and a long development track record. Currently Merrill Gardens manages 67 communities in 17 states. The continues to be led by fifth generation family member Cole Wright as chairman along with Tana Gall as President.
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.