Greystone, Passco Form Strategic Alliance

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Greystone has made a minority investment in Passco Cos. as the two firms form an strategic alliance to provide clients increased benefits from the Delaware Statutory Trust (DST) investment sector and other real estate investment opportunities.

Terms of the deal were not disclosed. Passco, a commercial real estate company specializing in acquisition, development and asset management throughout the United States, is represented by Kevin Gannon, chairman & CEO of Robert A. Stanger & Co. Inc.

The Greystone-Passco alliance creates a newly positioned institutional sponsor in the DST investment sector. By investing in Passco, Greystone, a national commercial real estate finance company, is strengthening its platform in a new market where Passco has been an industry leader for more than 20 years. The alliance will also provide a broader range of acquisition opportunities including post-construction and pre-stabilized properties.

Stephen Rosenberg, founder & CEO of Greystone, described Passco’s investment platform as a well-oiled engine. Rosenberg said in a prepared statement the two firms have aligned values and he expected the alliance would position both companies for continued growth.

Bill Passo, founder & CEO of Passco Cos., said in prepared remarks the alliance will enable Passco to strengthen its position as a major player in the industry and Greystone to continue to identify strong multifamily assets while diversifying into a new sector.

Growing Platforms

Greystone’s investment comes as Passco completed a record year of investments with $1.7 billion in transaction volume. Passco currently has $3.7 billion in assets under management, including 54 multifamily properties in 16 states. Among its recent acquisitions were two transactions in the Baton Rouge, La., market in November, when Passco purchased two Class A communities totaling 552 units in separate deals.

Passco, which was named one of Multi-Housing News’ 2021 Top Multifamily Property Owners in October, aims to exceed that growth in 2022 by leveraging Greystone’s extensive network, access to brokers and balance sheet. Greystone, the top HUD commercial lender and a top 10 Fannie Mae and Freddie Mac lender, originated $18.3 billion in CRE financing through more than 1,100 executions in 2021 and provides a full range of capital solutions for property investors. With Greystone’s backing, Passco aims to further expand its portfolio in primary and secondary markets throughout the U.S.

The alliance with Passco is not the only way Greystone has been expanding its reach in recent months. In October, Greystone and Cushman & Wakefield announced a strategic joint venture with the global real estate services firm acquiring a 40 percent stake in Greystone’s agency, FHA and servicing businesses for $500 million. The strategic joint venture boosts Greystone’s ability to invest in new products and expand other offerings including its bridge and CMBS products.