Greystone, a leading commercial real estate lending, investment, and advisory company, has provided $25.2 million in construction financing under the HUD 221(d)(4) program for the development of Sugar Mill Villas Apartments, a new 164-unit multifamily apartment community located at 1931 Chemin Metairie Parkway in Youngsville, LA.

The $25,248,200 loan will fund 85% of total project costs and is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. With this green-certified and energy efficient project, the borrower also qualifies for reduced Mortgage Insurance Premium (MIP).

Located within the master-planned Sugar Mill Pond neighborhood with convenient access to Lafayette, Sugar Mill Villas Apartments will offer easy access to the area’s shopping, restaurants, retailers and sought-after schools.  Sugar Mill Pond hosts year-round activities, which include festivals, live music, and other family-oriented events. The community is located within walking distance of the Youngsville Sports Complex, the region’s $20 million 70-acre recreational center. Youngsville was recently ranked the top city to reside in Louisiana by 24/7 Wall St., as covered by USA Today.

“The Greystone team is comprised of exceptional professionals who understand our vision and gets us the right financing quickly,” said client Robert Peek, who has nearly three decades of commercial and multifamily real estate experience. “We look forward to continuing our long-term relationship with Greystone as we continue to grow our portfolio.”

Greystone, a leading commercial real estate lending, investment, and advisory company, has refinanced a total of $29,420,356 in HUD-insured loans for two affiliated senior living facilities in Tennessee and Mississippi. The transaction was originated by Lisa M. Fischman in Greystone’s New York office.  

The transactions enabled the borrower to take advantage of the current low-rate environment and lock in long-term financing at historically low, fixed interest rates.

Greystone executed a $12,228,300 HUD A(7) loan with a 40-year term and amortization to refinance a 106-unit senior and assisted living facility located in Germantown, Tennessee. In addition to securing a low interest rate, the loan proceeds enable the borrower to make capital expenditure improvements to the property, Germantown Plantation Senior Living.

For the same client, Greystone utilized HUD’s Interest Rate Reduction (IRR) program to reduce the interest rate on $17,192,056 in financing that Greystone had secured in 2017. Built in 2011, the Silvercreek Senior Living Community in Olive Branch, Mississippi, offers 99 studio, one- and two-bedroom units as well as onsite activities and amenities such as transportation, fitness center and recreational facilities, banking and salon services.

HUD’s IRR program enables borrowers to modify their existing FHA loans to reduce their interest rate without refinancing. Greystone can typically complete the IRRs in approximately three weeks.

“Helping our clients take advantage of the falling interest rate environment and save on borrowing costs is in our DNA at Greystone. Knowing our clients can extract value and deploy more resources benefiting their senior residents and the community as a whole is what brings me to work each day,” said Ms. Fischman. “Perhaps that’s why our clients keep coming back to us as their preferred lender.”

“When my Greystone team reached out to tell me they could save us even more money, which could help us make improvements to our property, I was thrilled,” said Denise Littlefield, executive director of Germantown Plantation Senior Living. “On both transactions, the process was seamless, painless and quick, everything we’ve come to expect from Greystone. My Greystone team truly puts the needs of the facilities in my portfolio first, not just this time but every time.”

Greystone Real Estate Advisors announced it has closed the $15.5 million sale of Sonrise Villas I & II, an affordable housing community in Fellsmere, Florida. Greystone Managing Director Eric Taylor facilitated the sale on behalf of the buyer, Equity Management Partners, and the seller, Sonrise Villas LLC.

Located approximately 20 miles southeast of Vero Beach, Florida, Sonrise Villas I & II offers 240 two-, three- and four-bedroom units, which were originally constructed in two phases between 2004 and 2007 utilizing 9 percent Low-Income Housing Tax Credits (LIHTCs). Now in years 13-16 of the respective LIHTC maturity lifecycle, the property will remain income-restricted until 2057.

From start to finish, the all-cash transaction was completed within 14 days of the initial purchase and sale agreement execution. Equity Property Management intends to make capital improvements to the community and improve managerial efficiencies in order to maximize the value of the property.

“There’s a considerable amount of capital pursuing Section 42 LIHTC communities nationwide, as historically low cap rates, driven by a very favorable interest rate environment, push values for this asset class to new highs,” said Mr. Taylor. “This was one of the most seamless and concise transaction timeframes we have ever encountered, a true testament to the engagement of all parties involved.”

“Our experience with Greystone was superior – from finding us the right property at the outset and then moving to a quick close – we have never worked with a more professional or experienced team,” said Ben Mallah of Equity Management Partners. “We look forward to continuing our relationship with Greystone, and are excited to execute our vision for Sonrise Villas immediately.”

Greystone, a leading national commercial real estate lending, investment, and advisory company, has provided a $12,075,000 Fannie Mae Delegated Underwriting and Servicing (DUS®) loan to refinance a 36-unit multifamily property in Chicago, IL. The transaction was originated by Clint Darby in Greystone’s Chicago office with 925 Chicago Investment Partners LLC.  

The $12.1 million Fannie Mae Near Stabilization loan carries a 10-year term with a 30-year amortization, with the first four years of interest-only payments. This permanent loan represents an exit from construction financing.

Located in the River West neighborhood of Chicago, Germain House is a mixed-use property with ground-floor retail and loft-style units. The building was converted from commercial office-use to residential in 2018, including new amenities for residents such as a fitness center, clubhouse, pool, bike room, and rooftop deck.

“Our clients were able to repurpose this vintage commercial building into a collection of highly desirable, unique market-rate units - a great addition to the River West area,” said Mr. Darby. “We are thrilled to have provided the permanent financing solution as the project becomes stabilized, and congratulate them on a job well done. We look forward to working with them on future projects.”

“This development project was a labor of love for us, and we are thrilled with the outcome for long-term financing, and for Greystone’s guidance along the way,” said Ted Thilman, Principal, Rockwell Property Co.

Greystone Advances its Broader Commercial Initiative with Key Hire and Expansion of CRE Capital Markets Activity

Greystone, a leading real estate lending, investment, and advisory company, announced that Quinn Barton has joined as Chief Investment Officer of the Commercial platform.

In the newly created position as CIO of Commercial, Mr. Barton will oversee capital markets activities and capital deployment strategies for Greystone’s commercial division. He will serve an integral role in designing the overall blueprint for Greystone’s expanding CRE finance and investment activities.

Mr. Barton joins Greystone from Carmel Partners, a leading multifamily real estate private equity firm, where he led that firm’s origination of debt investments, including b-pieces and distressed multifamily mortgages. Prior to Carmel Partners, Mr. Barton was head of CMBS trading at Banc of America Securities, led B-Note and Mezzanine loan trading at Natixis, and also held senior CMBS trading roles at RBS Greenwich Capital Markets and JPMorgan Chase Securities.  

“Ultimately, we want to build out Greystone’s capabilities as a leading capital provider and partner for investors and borrowers alike in the broader commercial mortgage sector,” said Mr. Scott Chisholm, head of Commercial. “Quinn’s long track record in CMBS and private equity will enable us to formulate an actionable strategy for our commercial business. His capital markets expertise and relationships will elevate the incredible production power the entire Greystone team has exhibited to date.”

Greystone, a leading national commercial real estate lending, investment, and advisory firm, provided a $36.4 million HUD-insured construction loan under the HUD 221(d)(4) program to Grubb Properties LLC for the development of Link Apartments 4^th Street, a new 224-unit multifamily apartment community located at 501 W. 4^th Street in Winston-Salem, NC. The transaction was originated by Paul Fried of Greystone Capital Advisors through Greystone Servicing Company LLC. 

The FHA-insured financing for the property will fund 85% of total project costs and is structured as a non-recourse, fixed-rate construction loan that automatically converts to a 40-year, fully-amortizing permanent loan upon stabilization. With this green-certified and energy efficient project, the borrower also qualifies for reduced Mortgage Insurance Premium (MIP).

Link Apartments 4^th Street is located in the heart of downtown on 4^th Street, Winston-Salem’s main thoroughfare for commercial activity, providing convenient access to the City’s numerous employment centers and cultural institutions, including the recently developed Innovation Quarter, a 145-acre urban innovation district comprising more than 1.8 million square feet of office, lab and education space. Once complete, Link Apartments 4^th Street will deliver 224-units with a mix of well-appointed and highly-amenitized junior, 1-, and 2-bedroom apartments into this growing submarket.

“Link Apartments 4^th Street marks Grubb Properties’ growing presence in the Winston-Salem market and speaks to the company’s commitment to developing its unique Link Apartments^® brand in growing urban markets,” said Mr. Fried. “Grubb Properties is an important client and borrower of Greystone’s, and we appreciate the opportunity to have worked with them, again, as they continue to build out their portfolio.”

“Grubb Properties is happy to have again worked with the Greystone team and to have executed this HUD loan for the Link Apartments 4^th Street project,” said Henry Lomax, Chief Financial Officer of Grubb Properties. “Greystone understands Grubb Properties’ vision for developing a portfolio of innovative, high quality, and efficient residential properties in growing cities like Winston-Salem to help fill the housing gap. The Greystone organization got behind the effort and shepherded us, from start to close, through the HUD process.”