Dealmaker: Greystone Provides $30M in Michigan, California

Greystone, New York, provided a $25 million Fannie Mae delegated underwriting and servicing loan to refinance Hidden Lakes Apartments in Kentwood, Mich. 

John Marr, a managing director with Greystone, originated the loan for behalf of Alliance Management.

The 12-year loan carries a 30-year amortization structure after two years of interest-only amortization. Marr said the loan structure allows Alliance to sell or refinance the property after the eighth year with a much smaller prepayment premium and gives the firm a longer-term loan out to final maturity in the 12th year. 

“This particular structure from Fannie Mae affords the flexibility we knew this client needed in order to obtain a longer-term loan with the option to prepay it early without a large fee,” said Greystone Executive Managing Director and Head of Agency Lending Joe Mosley.    

Alliance Management CEO Robert Foote noted that the loan structure allows his firm to cash out and monetize investor equity as well as fund an ongoing property upgrade program. 

Greystone also provided a $5 million Freddie Mac Small Balance Loan to Greystone Place Apartments in Sacramento, Calif. Director John Tilsch originated the loan from Greystone’s San Francisco office.

The loan carries a 20-year term with a fixed rate for the first five years and one year of interest-only payments over a 30-year amortization at 73 percent loan-to-value.

Greystone Place–no affiliation with Greystone–has 120 rental units in California’s largest secondary market.

“With its rapid growth in population and employment, Sacramento is becoming one of the strongest rent growth markets in the nation,” said Rick Wolf, senior managing director and head of Greystone’s small loan lending group.