Pennsylvania-based Liss Property Group received a $46 million bridge loan from Greystone for the acquisition of a 310-unit apartment complex in Eagleville, Penn., Commercial Observer can first report.
The lender also introduced Liss Property to a joint venture equity partner, New York-based Azure Investments, to help finance the purchase. The partnership bought the apartment complex, Riverview Landing at Valley Forge, for $55 million from Texas-based Milestone Apartments REIT, a person familiar with the matter said on the condition of anonymity.
“Greystone’s well-structured and competitively priced bridge program along with access to equity providers served a key role in helping Liss Property Group acquire this high-quality asset,” Mark Jarrell, executive vice president at Greystone, said in prepared remarks. The company’s Vice President Nathan Schuss originated the loan.
The founder and chief executive officer of Liss Property, William Liss, said that the financing package was a part of Greystone’s Federal Housing Administration and Housing and Urban Development lending program, which provided the borrower with a 35-year term.
“We identified the project and came in very aggressive because we knew we would be an underdog in purchasing it,” he said. “We haven’t owned a property of this size and the purchase price was about double what we have bought in the past. We recognized the tremendous upside.”
Mr. Liss runs the real estate company with his two sons, Jason Liss, who is in charge of finance, and Jordan Liss, who is in charge of operations. The family-owned company, which Mr. Liss founded in 1999, owns and operates 1,600 units across 14 properties in the Philadelphia metropolitan statistical area.
The recently acquired Riverview Landing at Valley Forge, located along the Schuykill River in Pennsylvania, was constructed nine years ago and offers residents a pool, clubhouse, gym and business center. Mr. Liss told CO that his firm intends to invest $8,000 to $9,000 in upgrades for each unit.
“It’s a terrific location,” Mr. Liss said, noting that the complex sits near two major employment centers: King of Prussia and Center City, Philadelphia. “It’s an extremely vibrant area and we feel very fortunate that we were able to acquire this asset,” he added.
A representative for Azure could not be reached for comment.