Greystone Provides $64M in Bridge, Tax-Exempt Loans

Greystone, New York, provided a $58 million bridge loan to recapitalize ownership of Watermark at East Cobb Apartments in Marietta, Ga.

Keith Hires and Greg Krafcik of Greystone originated and Mike Galla and David Collie of iCap Realty Advisors arranged the loan.

The three-year bridge loan provided to Cortland Partners repaid current debt and recapitalized membership interests and will position the asset for permanent financing.

Cortland Partners Chief Investment Officer Mike Altman said his firm has created significant value through renovations and management since acquiring the 510-unit asset in 2013. “We are excited to increase our equity position as we continue to create value in the asset,” he said.

Greystone also provided a $6.2 million Freddie Mac Forward Rate Lock Tax-Exempt Loan to rehabilitate Mayberry Townhomes, a 70-unit affordable housing development in San Diego.

The Freddie Mac TEL included a 24-month forward rate lock with an 18-year permanent loan term and 35-year amortization schedule. Community HousingWorks, San Diego, acquired Mayberry Townhomes and will renovate the property utilizing 4 percent Low-Income Housing Tax Credits and construction financing from Bank of America Merrill Lynch, with Greystone and Freddie Mac providing the permanent financing.

Constructed in 1984, Mayberry Townhomes comprises 18 two-story townhouse buildings currently restricted to 50 percent to 80 percent of area median income. As a result of the Freddie Mac Forward Rate Lock TEL, the property will receive nearly $35,000 per unit in property improvements as well as a new office and meeting room. Upon completion of the renovations, the property will service 50 percent and 60 percent AMI levels.

“This acquisition of Mayberry Townhomes will lower rents and make more of these desirable townhomes affordable to working families in San Diego’s hot rental market,” said Community HousingWorks, Senior Vice President Anne Wilson.