Greystone Closes on $750M Debt Fund for Bridge, Mezz Loans
By Mack Burke June 20, 2018 12:44 pm
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Greystone—the nation’s largest Freddie Mac (FMCC) targeted affordable housing originator and one of the industry’s largest loan servicers—closed on a $750 million debt fund on May 30 to bring its capacity for providing short-term loans to roughly $2.5 billion, the firm announced.
The eight-year debt fund—called the Greystone Senior Debt Opportunity Fund and managed by Greystone Bridge Lending Fund Manager—comprises a wide range of institutional investors and large Canadian public pension funds, a spokeswoman for Greystone told Commercial Observer. UBS acted as placement advisor, along with HA Global Fund Placement, a subsidiary of Halman Aldubi Investment House.
“We are seeing incredible demand for flexible financing options for acquisitions of both stabilized and transitional properties, and this increased capacity enables us to help round out the increasingly complex capital stack for property investors,” Mark Jarrell, the head of Greystone’s portfolio lending group, said in a prepared statement. Jarrell and Greystone Senior Managing Director Jeff Baevsky led the process for establishing the fund.
The fund expects its lending capacity to exceed $2.5 billion in bridge and mezzanine financing on multifamily and healthcare assets, among others. The closing of the fund comes on the heels of Greystone’s push to expand it’s short-term lending platform, which provides senior mortgage bridge financing in the form of one- to three-year mezz and subordinate debt for multifamily and healthcare assets that are stabilizing and moving toward securing permanent, agency financing, according to the release.
Greystone’s short term program also provides five- to 10-year commercial mortgage-backed securities mezz product—a program established in October 2017—as well as first mortgages starting at $5 million and subordinate financing starting at $1 million.
