Steve Rosenberg.
Stephen Rosenberg
Chairman and CEO at Greystone
Last year's rank: 32
Last year was a time of expansion for Greystone, including the incredibly well-timed acquisition of C-III Asset Management in the fourth quarter.
Greystone announced its completed purchase of C-III and its $20.7 billion servicing portfolio in January.
“At the end of last year, we had the opportunity to purchase $20 billion of C-III’s servicing and special service [business], so that $20 billion added on to our existing $40 billion servicing portfolio,” said Stephen Rosenberg, Greystone’s chairman and CEO.
The purchase was prescient, as its advantages have grown in lockstep with the current downturn.
“The reason we were attracted to that opportunity is as a hedge to a downturn in the economy,” he said. “We assumed that if the economy started turning downward, we might be making fewer new loans, and so the special servicing business [would start] growing. The cash flow starts growing when the economy goes down because more loans go into default. Little did we know that three months after our purchase, the economy would actually take a dive. So the special servicing business [has come] to life as a result of the downturn.”
In November, the company also announced the hiring of Scott Chisholm from Ackman-Ziff, as head of commercial and business development for its lending platform. The new role will bolster Greystone’s capital solutions’ reach within various asset classes.
Greystone, which originated $13.7 billion in volume in 2019, closed $415 million in construction financing and $160 million in equity for Douglaston Development’s mixed-use residential development at 601 West 29th Street, at Hudson Yards.
Since COVID hit, Rosenberg said that after an initial period of confusion, the company has prospered, helped in part by an equilibrium between being optimistic about the future and preparing for a downturn that is part of their normal operations.
“There’s a balance we walk on a daily basis between, ‘What if something bad happens, let’s try to be more conservative,’ and, ‘We have to be competitive because otherwise we won’t get any business,’” said Rosenberg. “Our volume has actually increased through the crisis between our agency business and our HUD business. Our lending has maintained itself and even grown compared to last year. Interest rates are still incredibly low, and the government agencies have really come through to stabilize the market. Fannie, Freddie and HUD are absolutely open for business.”—L.G.
