NEW YORK CITY — Cushman & Wakefield (NYSE: CWK) and Greystone have announced a strategic joint venture to deliver advisory services and capital solutions to existing, joint and new clients of both firms nationwide.
Under the terms of the agreement, Cushman & Wakefield will make a strategic investment of $500 million to acquire a 40 percent stake in Greystone’s agency, HUD and servicing businesses. Greystone intends to use the capital to create new product offerings. The joint venture transaction is slated to close in the fourth quarter of 2021, subject to customary closing conditions.
Greystone is a multifamily lender focused on bridge, Fannie Mae DUS, Freddie Mac Optigo and HUD loans. The joint venture will allow Cushman & Wakefield to access a broader range of debt products for property acquisition, refinancing, rehabilitation and new construction.
“We’re excited 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,” says Andrew McDonald, Cushman & Wakefield’s chief executive, Americas.
This investment expands Cushman & Wakefield’s presence in the multifamily sector. In early 2020, the firm acquired Pinnacle Property Management Services LLC, the third-largest multifamily property management firm in the U.S. The investments enable Cushman & Wakefield to provide a complete set of services throughout every stage of investment in multifamily assets.
“While we are initially focused on the multifamily market, we see sizable growth opportunities ahead in serving clients with capital and services in other commercial asset classes,” says Stephen Rosenberg, founder and CEO of Greystone.
Cushman & Wakefield is a Chicago-based global real estate services firm with 50,000 team members and $7.8 billion in revenue during 2020. The company has a presence in 60 countries.
Greystone is a New York City-based private commercial real estate finance company with expertise in debt, equity, investment sales and loan servicing. Yearly, Greystone originates more than $16.6 billion in loans and has a loan servicing portfolio of over $70.2 billion. Through its affiliates, the company manages over 10,000 multifamily units and 2,000 skilled nursing beds.
— Julia Sanders