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Jun. 11, 2014

TODAY’S DEALS: Greystar Closes on $800M Value-Add Multifamily Acquisition Fund

Charleston, S.C.—Greystar Real Estate Partners announced the final close of Greystar Equity Partners VIII, L.P. (GEP VIII), a discretionary commingled fund focused on the acquisition of value-add multifamily assets across the United States. The final close brings total equity commitments to $800 million, with contributions from a diverse group of global investors ranging from domestic and international pension plans to private wealth managers. GEP VIII is Greystar’s most recent fund offering and follows Greystar Equity Partners VII L.P., a $600 million predecessor value-add fund that is fully invested with concentrations in major markets nationwide.

GEP VIII’s fund strategy is to aggregate a nationally diversified portfolio of high-quality multifamily assets in target markets that are poised for outperformance. As the largest apartment operator in the country with expertise across acquisition, development and renovation disciplines, Greystar looks to leverage its vertically-integrated platform to identify mismanaged or undercapitalized communities in which the company’s management and renovation expertise can drive meaningful value enhancement. “Greystar is extremely excited about the final close of the fund, and we are encouraged with the investor reception we received,” says Bob Faith, chairman and CEO of Greystar. “The recent expansion of our operating platform gives us even greater depth throughout the major markets in the U.S., which will further enhance our ability to identify and execute on attractive investment opportunities for our investors.”

As of publication date, GEP VIII has allocated approximately $150 million towards a seed portfolio of 10 properties including an asset in Los Angeles and a collection of value-add opportunities in markets with high exposure to domestic energy employment including Houston and Dallas. “While the multifamily landscape has evolved over the last couple years, we continue to have a positive outlook on the industry driven by strong secular demand trends and headwinds against widespread over-development,” explains Wes Fuller, executive managing director and head of Greystar’s Investment Management business. “We believe the environment is one that favors value-add expertise, and we are keenly focused on finding the right opportunities in the right markets.”

NorthMarq arranges $34.4M refinance with fice-year I/O

Boston—James Murphy, managing director of NorthMarq Capital’s Boston based regional office secured the $34.4 million refinance for Parkside Commons Apartments, a 238-unit multifamily property located at 100 Stockton Street in Chelsea, Mass.

The property is owned by John M. Corcoran & Co. and Guardian Life Insurance Company and managed by Corcoran Management Company Inc. The transaction was structured with a seven-year term with five-years of interest only.

“We are grateful for the opportunity to work with one of the area’s premier multifamily development and ownership groups,” says Murphy. “The lender easily recognized the quality of this class ‘A’ LEED Silver Certified asset, along with the strength of the sponsorship and was able to provide a competitive loan structure that offered the rate and flexibility required to win the deal.”

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