Dealmaker: Greystone Closes $58M In California, Louisiana

Greystone, New York, provided $27 million in Freddie Mac Small Balance Loans for an 11 multifamily property portfolio in Los Angeles.

Greystone Director Dale Holzer originated the loans for a Los Angeles real estate investment group. “The properties were spread out amongst four multi-asset entities, in combination with multiple investors, so it was imperative that the transactions closed concurrently and at the application terms,” he said.

The loans represent one of the largest single-borrower portfolios closed using Freddie Mac’s new Small Balance Loan platform.

Holzer said the borrower received significant cash-out proceeds that will fund seismic work to comply with Los Angeles’ new seismic retrofit ordinance. It will also return some proceeds to its investors.

The properties within Baldwin Village in South Central Los Angeles range in size from 17 to 72 units per property. While the properties are classified as market-rate housing, 98 percent of the units will maintain affordable rent levels.

Greystone also provided a $30.6 million FHA-insured loan to Noland McKay Manchac Limited Partnership to construct Manchac Lake Apartments in Prairieville, La.

Donny Rosenberg, managing director with Greystone, originated the loan, which carries a fixed interest rate during the construction period followed by a 40-year term with straight amortization.

Rosenberg called the 221(d)(4) product a compelling option for new multifamily construction. “It is still, by far, the longest-term construction loan product available in the market and enables the developer to lock in a 40-year fixed interest rate prior to construction instead of leaving them exposed to interest rate volatility over the next two to three years until the project is built and stabilized,” he said.

The property will consist of 272 market-rate units on a 23.3 acre site on Airline Highway in Ascension Parish.