Greystar Launches Its Second Debt Fund

Greystar Real Estate Partners announced the launch and funding this week of its second Greytstar Credit Partners  fund.

The $600 million fund will focus on the acquisition of securitized subordinated debt as well as junior notes, or mezzanine debt collateralized by multifamily assets.

GCP II is the successor to GCP I, a $500 million fund created in 2018.

The new move, the company said, was “a logical progression for us.”

Bob Faith, founder, chairman and CEO of Greystar, noted that, “Our principal investment business has benefited from the development of new strategies and expansion into new markets, with each endeavor leveraging our extensive operating platform and access to data.”

Brett Lashley, managing director of Investments and Patrick Reilly, director of Investments will continue to oversee Greystar Credit Partners’ investment and portfolio management activities. Both men have extensive experience in their respective fields, Greystar said.

The announcement is a boon for the company overall, Lashley said,

“Greystar’s large and vertically-integrated rental housing platform, together with our intimate knowledge of underwriting multifamily assets as a principal, positions us well to invest in the most subordinate part of the capital structure,” Lashley said iin prepared remarks,

Greystar manages and operates more than $200 billion of real estate in nearly 200 markets globally including offices throughout the United States, United Kingdom, Europe, Latin America, and the Asia-Pacific region.

The company says it’s the largest operator of apartments in the United States, managing approximately 660,000 units/beds. It has an institutional investment management platform with approximately $35 billion of assets under management, including over $15 billion of assets under development.

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