Industry Leaders Bring Together Debt Platforms and Disposition, Acquisition and Portfolio Assessment Services

Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, and Greystone, a leading national commercial real estate finance company, announce they will enter into a strategic joint venture to deliver best-in-class advisory services and capital solutions to existing, joint and new clients of both firms nationwide. Under the terms of the agreement, Cushman & Wakefield will make a strategic investment of $500 million to acquire a 40% stake in Greystone’s Agency, FHA and Servicing businesses. Greystone intends to use the capital to create innovative product offerings which will position the company for future expansion. The transaction is anticipated to close in Q4 2021, subject to customary closing conditions.

Greystone is a top multifamily lender, including bridge, Fannie Mae DUS®, Freddie Mac Optigo®, and HUD, giving Cushman & Wakefield’s client base more direct access to a broad range of debt products for property acquisition, refinancing or substantial rehab / new construction. In turn, Cushman & Wakefield brings a well-established network of advisory professionals in core markets across the U.S., enabling both firms, together, to offer commercial property investors a holistic, one-stop approach.

Cushman & Wakefield’s Chief Executive, Americas, Andrew McDonald, said, “We’re excited to offer a new integrated capability to our investor clients with more direct access to Greystone’s balance sheet and capital solutions, including debt financing with Fannie Mae, Freddie Mac, and HUD. Greystone’s passion and creativity in structuring deals and leveraging its balance sheet for clients are the reasons the firm stands out. This combination will demonstrate how global investors can benefit from two industry leaders providing premier investor services and a seamless, integrated client experience.”

“Greystone’s mission has always been to provide an unparalleled client experience, and this deal truly manifests what we hope to achieve in solving for any need of a commercial property investor,” said Stephen Rosenberg, Founder and CEO, Greystone. “By combining our collective powers and areas of expertise, I believe there is no reason for an investor to search anywhere else for capital and advisory solutions. I’m thrilled by the potential for growth for both Greystone and Cushman & Wakefield as we work together to deliver on our clients’ goals.”

This investment expands Cushman & Wakefield’s presence in the multifamily sector. In early 2020, the firm acquired Pinnacle Property Management Services, LLC, the third-largest multifamily property management firm in the U.S. These investments enable Cushman & Wakefield to provide a complete set of services and expertise throughout every stage of investment in multifamily assets.

“While we are initially focused on the multifamily market, we see sizable growth opportunities ahead in serving clients with capital and services in other commercial asset classes, and I couldn’t be more excited about the potential, and what the future brings,” Rosenberg added.   

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 (GSC), Greystone Funding Company LLC (GFC) and/or other Greystone affiliates. For more information, visit www.greystone.com.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements that reflect the parties’ current views with respect to, among other things, future events and results, which are intended to be covered by the safe harbor provisions for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and you can often identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “forecasts,” “shall,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based upon the parties’ historical performance and current plans, estimates and expectations in light of information currently available to the parties. The inclusion of this forward-looking information should not be regarded as a representation by us, that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions that could cause actual results to differ materially from those anticipated, including, but not limited to, the risk that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the Contribution Agreement related to the proposed transaction or that the closing of the proposed transaction might be delayed or not occur at all; potential adverse reactions resulting from the announcement or completion of the transaction; the diversion of management time on transaction-related issues; the ultimate timing, outcome and results of operating the joint venture; that anticipated expansion plans do not materialize; and the effects of the transaction in the parties’ operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Additional factors that could cause Cushman & Wakefield’s results to differ materially from those described above can be found in Cushman & Wakefield’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. The parties do not undertake any obligation to publicly update or review any forward-looking statement except as required by law, whether as a result of new information, future developments or otherwise.

107-Unit Apartment Community Sold for $30.9 Million

Pathfinder Partners, a San Diego-based firm specializing in multifamily real estate investments, announced today the sale of The Sterling, a 107-unit community in Gilbert, Arizona, 23 miles southeast of downtown Phoenix. The property was acquired by Casa Anita Apartments, LLC for $30.9 million.

The Sterling (previously named “The Vintage”), built in 2000 as condominiums, is situated on 9.3 acres and includes 13 residential buildings consisting of six studio lofts, 21 one-bedroom/one-bathroom, 40 two-bedroom/two-bathroom and 40 three-bedroom/three-bathroom units averaging a spacious 1,154 square feet.

According to Lorne Polger, senior managing director of Pathfinder Partners, his firm purchased The Sterling in December 2017 and completed $1.4 million in extensive renovations. “We understood the importance of The Sterling’s location – only two miles from the Gilbert Heritage District, a popular shopping destination. Additionally, the city boasts a combination of strong employment growth and a nationally ranked school system.”

Pathfinder invested in repainting the buildings, installing a dog park and package locker, renovating more than half of the units and upgrading the clubhouse, leasing office and pool area.

The Sterling was 97% occupied at the time of the sale. David Fogler of Cushman & Wakefield Multifamily Advisory Group brokered the transaction.

The 25-story Four West Las Olas Apartments opened this year

Fort Lauderdale, Fla. (October 12, 2020) –  Electra Capital, a boutique lender specializing in capital solutions for the multifamily industry, announced today that it has closed a $92 million bridge loan for Four West Las Olas, Elevate Partners’ new luxury apartment tower in downtown Fort Lauderdale, Fla. The loan replaces an existing construction loan for the property, which is currently 58% leased.  

This marks Electra Capital’s entry into the bridge loan market, and is the largest loan Electra has originated to date. Electra Capital brought in Benefit Street Partners Realty Trust, a public non-traded mortgage REIT, to provide the senior mortgage of $76 million, while Electra Capital retained a $16 million mezzanine loan.

“This loan illustrates the strong demand for alternative forms of financing given the current dislocation of the capital markets,” said Samuel J. Greenblatt, CEO of Electra Capital. “Electra’s decades of multifamily expertise, and reputation for closing expeditiously, allowed us to provide Elevate Partners the necessary capital to complete lease up of its new luxury property in Fort Lauderdale.”

Michael Comparato, Head of Commercial Real Estate for Benefit Street, commented, “Sam and I have known each other for over two decades and we have provided financing to Electra affiliates in the past. We find Electra to be exceptional in asset selection which gave us the ability to commit and close on the transaction in 22 days start to finish.”

Cushman & Wakefield arranged the financing. 

Denny St. Romain, Vice Chairman of Cushman & Wakefield stated. “The Electra Capital team were consummate professionals and worked diligently to close the loan. Their entire process from quote to closing proceeded smoothly. I expect them to be a very prolific lender given our experience with them on the loan for Four West Las Olas.”

The 25-story, 250-unit luxury apartment tower located at 4 West Las Olas Boulevard features studio, one-, two-, and three-bedroom floor plans, along with penthouses, ranging from 588 square feet to 1,376 square feet. Apartments feature quartz countertops, stainless steel appliances, full size washer/dryers, private balconies and view of the Atlantic Ocean and New River. Community amenities include a billiards/speak easy lounge with player piano, rooftop pool, sky club room, 24-hour state-of-the-art fitness center, coffee bar and business center, and garage parking. 

Electra Capital is an active alternative lender, and has closed the following loans since the onset of the COVID-19:

·        $12.2 million of preferred equity for the acquisition of the 330-unit Pines at Woodcreek Apartments in Houston, Tex.

·        $3.25 million preferred equity investment in The Carter, a 300-unit apartment community in Norcross, Ga.

·        $5.5 million preferred equity investment in Stonebridge at City Park Apartments, a 240-unit community in Houston, Tex.

·        $4.09 million preferred equity investment in Element at University Park, a 192-unit apartment community in College Station, Tex.

About Electra Capital

Electra Capital provides bridge loans, mezzanine loans and preferred equity ranging from $5 million to $150 million. The firm benefits from the combined experience of its executive leadership team, who have collectively closed hundreds of transactions representing over $10 billion over their careers. Electra Capital boasts a national network of experts in acquisitions, underwriting, structuring, closing, and management, enabling us to effectively meet our client’s needs.

Cushman & Wakefield announced today that the firm has acquired Atlanta-based Multi Housing Advisors (MHA) in a transaction that creates the leading multifamily brokerage platform in the Southeast U.S.

With the addition of MHA, Cushman & Wakefield now commands 23.8 percent of multifamily investment sales in the Southeast, year-to-date. The combined firms, with nearly $3 billion in transactions, captured 20 percent of 2015 Southeast multifamily sales, compared with CBRE's 15.7 percent market share.

MHA cofounders Josh Goldfarb and Marc Robinson will serve as Cushman & Wakefield's U.S. multifamily leaders and will be based in Atlanta and Charlotte. The MHA leadership team also includes Jimmy Adamsin Birmingham, Jordan McCarley in Charlotte and Tyler Averitt and Robert Stickel in Atlanta. They join Cushman & Wakefield's existing Southeast multifamily group led by Chris Spain, Michael Kemether andBrandon Whitesell.

"Adding MHA exemplifies Cushman & Wakefield's commitment to growing our capital markets platform, especially in the multifamily sector," said Noble Carpenter, Cushman & Wakefield President, Capital Markets, Americas. "Strategically, we are deeper and positioned to serve clients across the spectrum of multifamily properties – from institutional to professional equity to private capital investors – while achieving broader geographic coverage and scale. What's more, MHA is a seamless fit culturally, which is a crucial element as we combine operations and continue to build momentum.

"Short term, there are immediate benefits given multifamily's current strength, and the long-term benefits MHA brings to the table are equally, if not more, compelling," Carpenter concluded.

Founded by Goldfarb and Robinson in 2002, MHA has produced average sales growth of 55 percent and transaction volume totaling more than $5.9 billion in the past five years, with 70 percent of its business from recurring clients. Since its founding, MHA has sold more than 140,000 multifamily units through more than 850 individual transactions. The firm brings 13 brokerage professionals and a staff of 35 to Cushman & Wakefield, and adds on-the-ground multifamily capabilities with offices in Birmingham and Charlotte.

"Cushman & Wakefield is one of the iconic firms in commercial real estate services, as well as one of the fastest growing," Goldfarb said. "Its super-regional model, overlaid with our eight-state multi-office platform and realized upward trajectory, create a multi-family powerhouse in the Southeast, giving clients broader buyer exposure. Those factors and the firm's leading capital markets platform make this combination an ideal fit."

Added Robinson, "Joining Cushman & Wakefield creates unlimited opportunities to serve clients across the Southeast and, collectively, to grow our geographic coverage and multifamily platform across the U.S. The breadth and depth of our new team is truly remarkable and will be an enormous benefit to each segment of multifamily investors, offering them access to a wider scope of investment options."

Combining the two firms' collaborative cultures ensures that clients receive industry-leading service and counsel from a team that is solely focused on clients' success, while the additional scale bolsters Cushman & Wakefield's talent base, Spain said.

"During my 35-year career, multifamily housing has emerged as a leading product for the real estate investment community," said Spain. "The 'eat-what-you-kill' brokerage model is antiquated and does not provide clients with comprehensive market information or sophisticated cooperative sales implementation. Our regional model and team compensation structure assure our clients of greater market intelligence and wider market exposure when selling their assets. This is the future for our business.

"Additionally, I am excited about the energy of our team," Spain continued. "The enthusiasm and longevity of this new team will assure Cushman & Wakefield of strong results for many years to come."

Added John O'Neill, Cushman & Wakefield Atlanta Managing Principal, "Cushman & Wakefield has been a leader in Atlanta multifamily investment sales for more than a decade, and adding MHA to our team is a catalyst for dominance. A we've worked through this acquisition, I've really gotten to know Marc and Josh and seen what they will bring to our firm, not just from a business perspective but from a cultural perspective. MHA is an outstanding complement to our firm." 

Federal Capital Partners® (FCP) is making its first multifamily investment in Atlanta, GA with the recapitalization of two apartment communities totaling 369 units in strong submarkets of Atlanta, GA. Magnolia at Whitlock, with 152 units, is located in Marietta, GA, and The Clarion, with 217 units, is in Decatur, GA. FCP is investing in the two communities through a joint venture with Virginia Beach based real estate investment firm, FortCap Partners.

FCP's investment in the Atlanta communities comes after an active year expanding into multiple southeastern markets, including Orlando, Tampa and Nashville, and in conjunction with an increasing presence in the Raleigh-Durham, Charlotte and Charleston markets.

"Following the planned renovations, Magnolia at Whitlock and The Clarion will both be extremely well positioned to have an enhanced appeal to residents in their respective submarkets," said FCP Sr. Vice President, Bryan Kane. "These communities fit nicely within FCP's portfolio. We look forward to working with FortCap to reposition the communities and maximize their operations."

The Clarion is positioned within the densely populated Decatur submarket near the Avondale MARTA station, Emory University, the Centers for Disease Control and other major employers. The community is surrounded by established residential neighborhoods and is proximate to downtown Decatur, Midtown and Buckhead. The Clarion will receive unit renovations along with improvements to the common areas and community amenities.

Magnolia at Whitlock is one of the most affordable rental communities in Marietta, a submarket that has experienced strong rental rate appreciation as well as a reduction in the number of workforce housing communities. The property consists predominantly of two and three bedroom units with in-unit washers and dryers and spacious floor plans. Magnolia at Whitlock, built in the 1970's, will receive improvements to common areas, landscaping and amenities. The community is proximate to leading employers, Lockheed Martin and Dobbins Air Force Base and is within easy reach of the new SunTrust Park and historic downtown Marietta.

Joint venture equity was arranged by Mike Ryan and Telly Fathaly of Cushman & Wakefield's Atlanta-based Equity, Debt and Structured Finance team.