Cushman & Wakefield Enters Joint Venture with Greystone
The deal sets up a one-stop shop for services and financing.
Global real estate services firm Cushman & Wakefield and real estate finance and investment company Greystone announced a new joint venture today. The two companies said the venture will “deliver best-in-class advisory services and capital solutions to existing, joint and new clients of both firms nationwide.”
Cushman is making a $500 million investment into Greystone for a 40% stake in its agency, FHA, and servicing businesses. “Greystone intends to use the capital to create innovative product offerings which will position the company for future expansion,” said a company announcement.
The complementary offerings will allow the two companies to pass leads and appropriate business between the partners.
“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. Greystone’s passion and creativity in structuring deals and leveraging its balance sheet for clients are the reasons the firm stands out,” Andrew McDonald, Cushman & Wakefield’s chief executive of the Americas, said in prepared remarks.“This combination will demonstrate how global investors can benefit from two industry leaders providing premier investor services and a seamless, integrated client experience.”
“By combining our collective powers and areas of expertise, I believe there is no reason for an investor to search anywhere else for capital and advisory solutions,” said Stephen Rosenberg, Greystone founder and CEO.
Cushman sees an expansion of its multifamily practice, a particularly hot industry sector, which was previously strengthened by its 2020 acquisition of Pinnacle Property Management Services, a major multifamily property management firm.
The joint venture is an expansion of a strategy Greystone has been using. Last year, it partnered with Lappin Associates to source billions in capital for affordable housing financing. In May 2021, Greystone and MONTICELLOAM entered a joint venture to combine their senior housing and healthcare lines of business to provide capital financing and services for the skilled nursing, assisted living, and senior housing sectors.
Greystone says that it originates more than $16.6 billion in loans annually, and a loan servicing portfolio of over $70.2 billion. Through affiliates, the company manages more than 10,000 multifamily units and 2,000 skilled nursing beds.
Cushman & Wakefield had $7.8 billion in 2020 revenue across operations in 60 countries with a hundred-year-old history.