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Cushman & Wakefield Invests $500M In New JV With Greystone

Cushman & Wakefield's New York City headquarters at 1290 Sixth Ave.

One of the world’s largest brokerage firms and a major lender are joining forces.

Cushman & Wakefield is set to buy a 40% stake in Greystone’s Agency, FHA and Servicing companies for $500M sometime this quarter, the brokerage firm announced Thursday. The new joint venture further expands C&W’s footprint into multifamily financing. 

“Greystone’s passion and creativity in structuring deals and leveraging its balance sheet for clients are the reasons the firm stands out,” Cushman & Wakefield CEO for the Americas Andrew McDonald said in a statement. “This combination will demonstrate how global investors can benefit from two industry leaders providing premier investor services and a seamless, integrated client experience.”

Greystone plans to use the funds to increase the kinds of loans it offers its customers with an eye on expansion, according to the release. The transaction is expected to close before the end of the year.

“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,” Greystone founder and CEO Stephen Rosenberg said in the release. 

Cushman & Wakefield isn't alone among brokerage firms investing and partnering with multifamily lenders. Marcus & Millichap invested in M&T Realty Capital to provide more multifamily sector financing options, it announced.

Competition is at a high point for multifamily financing right now and lenders are getting aggressive to get in on these deals — with some leverage ratios surpassing 80%.

Coupled with its 2020 acquisition of Pinnacle Property Management Services, Cushman & Wakefield is focused on expanding deeper into multifamily services, but Rosenberg noted in the Greystone announcement that the firm "see[s] sizable growth opportunities ahead in serving clients with capital and services in other commercial asset classes, and I couldn’t be more excited about the potential, and what the future brings."