Inside the Cushman & Wakefield, Greystone Strategic JV
The investment helps make C&W a one-stop shop for multifamily mortgage originations.
The strategic joint venture between Cushman & Wakefield and Greystone that will see the global real estate services firm acquire a 40 percent stake in Greystone’s agency, FHA and servicing businesses for $500 million is being called a “win-win” for both firms that could be a model for other companies.
“This expands C&W’s reach into becoming a one-stop shop for those buying and selling commercial real estate,” said Jahn Brodwin, senior managing director at FTI Consulting. “While many brokerage firms have added or attempted to add this service organically, this instantly gives C&W meaningful presence in the mortgage origination and servicing arena and will allow Greystone to expand its footprint.”
Brodwin said other companies will be watching to see if both firms will be able to successfully integrate and cross-sell as a result of the strategic joint venture.
Best-in-Class Services, Solutions
The JV was announced Wednesday as a strategy for both companies to deliver best-in-class advisory services and capital solutions to existing, joint and new clients nationwide. The transaction is expected to close by end of this year.
Cushman & Wakefield will be able to offer its clients more direct access to a broad range of debt products for acquisition, refinancing, rehabilitation and new construction. Greystone is a top multifamily lender, including bridge, Fannie Mae DUS, Freddie Mac Optigo and HUD loans.
The strategic joint venture will boost Greystone’s ability to invest in new products and expand other offerings including its bridge and CMBS products, according to Pamela van Os, senior vice president & head of West Coast agency loan production at Greystone. She said substantial capital will also be deployed into technology.
“Bridge has been extremely popular this year and we want to continue our investments in those products as well as new products,” van Os told Multi-Housing News.
Stephen Rosenberg, Greystone founder & CEO, said in prepared remarks combining the companies’ collective powers and areas of expertise should provide a one-stop solution for investors with capital and advisory needs. Rosenberg noted the initial focus of the strategic joint venture will be on the multifamily market but he also sees sizable growth opportunities ahead to serve clients with capital and services in other commercial asset classes.
Both companies have expanded their presence in the multifamily sector within the past 18 months. In February 2020, Cushman & Wakefield purchased Pinnacle Property Management Services, the third-largest property management firm in the U.S. In May, Greystone formed a joint venture with MONTICELLOAM to provide real estate financing for firms operating in the senior housing and health-care sectors.