Global Brokerage Center Cushman and Wakefield (C&W) acquired a 40% stake in the main multifamily financier Gray stoneagency lending and service activities, putting them in competition with other consulting firms that have recently acquired direct agency lending capabilities.
C&W acquired the 40 percent stake in the Greystone branch, Federal Housing Administration (FHA) and management services for $ 500 million, bringing together the two companies’ debt and sales platforms, C&W announced today. The deal is expected to be finalized in the fourth quarter.
Greystone’s network and its position as one of the most active multi-family bridge loan providers and originators of Fannie Mae Subscription and Delegated Maintenance (DUS), Freddie mac Optigo and US Department of Housing and Urban Development debt products, will offer C&W and its existing customers more options in financing existing rental stock or in building new ones.
“Greystone’s mission has always been to provide an unparalleled customer experience, and this agreement truly demonstrates what we hope to achieve by meeting any need for a commercial real estate investor,” Founder and CEO of Greystone Stephane Rosenberg noted. “By combining our collective powers and our areas of expertise, I believe there is no reason for an investor to look elsewhere for capital and advisory solutions.”
This move is also a continuation of C & W’s ongoing efforts to expand its multi-family capabilities. In early 2020, it acquired one of the largest multi-family property management companies in the country, Pinnacle Property Management Services.
“We are delighted 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,” C&W CEO of the Americas , Andrew McDonald, noted. “Greystone’s passion and creativity in structuring transactions and optimizing 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 top investor services and a seamless and integrated customer experience. “
Rosenberg noted the initial focus of this partnership on the multi-family market, but said the door is open to more possibilities within the larger commercial real estate market in the future.
“We see tremendous growth opportunities to come as we serve our clients with capital and services in other business asset classes, and I couldn’t be more excited about the potential and what the future holds.” , said Rosenberg.
In recent years, traditional commercial real estate consultancy firms have been pis preparing to acquire lending capabilities from multi-family agencies through M&A activity, trying to merge brokerage operations with direct lending to get the best of both worlds.
More recently, in June, Meridian Capital Group and Barings Capital Multifamily officially launched NewPoint Real Estate Capital, combining Meridian’s advisory relationships with Barings’ multi-family lending and agency and asset management capabilities. Former CEO of Freddie Mac David Brickman and A capital letterthe former head of multi-family, underwriting and asset management, Jeff lee, were chosen to lead NewPoint.
Mack Burke can be reached at [email protected].