Greystone Expands Extensive Bridge Loan Services to Healthcare Sector

By Gail Kalinoski, Contributing Editor

Steve Germano, managing director of Greystone’s bridge loan platform

Drawing on its success with the multi-family market, Greystone, a national provider of multi-family and commercial mortgage loans, is expanding its bridge loan service to the healthcare sector, particularly independent living, assisted living and skilled nursing facilities.

“The availability and accessibility of bridge loans for healthcare and multi-family properties is vital for owners, property operators and intermediaries who need interim financing as they plan for a lengthier period of time,” said Steve Germano, managing director of Greystone’s bridge loan platform who will now oversee the healthcare bridge loan service.

“Both sectors have unique challenges and requirements, and with Greystone’s successful history originating, underwriting and servicing loans across multiple segments, clients can be confident that their needs are being met, both in the short and long-term,” Germano added.

The bridge loan program is aimed at those who need to obtain short-term financing, up to $30 million or more, during acquisition, stabilization, rehabilitation and repositioning. The New York-based firm often works with FHA and Fannie Mae and has been able to transition all of its bridge loans to permanent financing or on a schedule for the anticipated take-out, according to Greystone.

During the last 18 months, Greystone has closed on more than $100 million in bridge loans for its multi-family clients. Several were converted to FHA permanent housing including a 370-unit apartment complex in Houston, which used a $24.5 million bridge loan to refinance existing debt and buy out a partner while waiting for its permanent financing, and a 243-unit multi-family property in Venice, Fla., which used a $9 million bridge to a permanent HUD loan. Greystone also provided bridge financing to owners of a two-property multi-family portfolio in the Dallas/Fort Worth area so they could renovate units prior to obtaining permanent financing from Fannie Mae.

Greystone has also closed bridge loans for student-housing properties, primarily to acquire and stabilize the properties.

A Second-Half 2012 Seniors Housing Research Report from Marcus & Millichap indicates that Greystone may be expanding its bridge loan program in healthcare for seniors at the right time. “The investment market will remain strong for seniors housing properties over the next several quarters as capital comes off the sidelines, assuming no major economic headwinds rise,” the report stated. “Buyers will focus on top tier or B+ properties in good locations.”

The firm’s bridge loan program is part of a joint venture with Hillwood, a Dallas-based real estate and development firm owned by Ross Perot Jr., and Leon Capital Group of Dallas, a private equity partnership led by Fernando De Leon which invests in real estate assets and debt positions.

Greystone is affiliated with Greystone & Co., Inc., a financial services and private investment group that had its start in real estate lending. It has since expanded into mortgage finance, proprietary investment and healthcare.