Greystone, Monticello to Form Financing JV
- May 25, 2021
Greystone and MONTICELLOAM will team up to form a joint venture that will provide real estate financing for businesses operating in the senior housing and health-care sectors.
The partnership will combine the two companies’ lines of business for senior housing and health care into a one-stop-shop for those looking for capital financing options in those sectors. The joint venture will be looking for skilled nursing, assisted living and senior housing projects to work with.
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Specifically, the joint venture will offer first mortgage floating rate bridge loans, fixed-rate conventional term loans and permanent financing through FHA, Fannie Mae and Freddie Mac. The partnership will also cover tax-exempt bond financing, equity capital, mezzanine and preferred equity products.
The joint venture’s reach will also include accounts receivable and working capital lines of credit, loan servicing and asset management, troubled asset advisory and workout services, and health care operational consulting.
Alan Litt, co-founder at Monticello, said in prepared remarks that the company will be able to combine its proprietary technology with Greystone’s large presence in the middle-market bridge and FHA-insured loans market.
Complementing each other
Prior to the joint venture proposal, the two companies were heavily involved in the senior housing and health-care finance sectors on their own. Greystone originated more than $3 billion in senior housing and health-care finance through FHA, Fannie Mae, Freddie Mac, bridge and other loans.
In December, Greystone originated $23.8 million in HUD financing for three assisted living communities in New Hampshire. A month prior, Greystone also arranged a $10.4 million refi for a skilled nursing facility in Boonville, N.Y.
As for Monticello, the partnering company is involved in more than $1.8 billion in senior housing and health-care loans across the U.S.
“Greystone’s had a long relationship with the MONTICELLOAM team and they’re similar to us in their creativity and nimble nature,” Stephen Rosenberg, CEO of Greystone, told Multi-Housing News. “This JV will help expand our businesses for both, while increasing options and access for our clients in senior housing and health care.”