The Related Urban Development Group has secured US$167 million in construction loan financing via Greystone's affordable housing platform. These funds will be used to realise a twin-tower high-rise project in Miami, as the Commercial Observer has learned. Greystone Housing Impact Investors (GHI) provided an US$80 million construction loan through its joint venture with the BlackRock Impact Opportunities Fund. Additionally, Greystone Real Estate Capital (GREC) contributed US$27.4 million in 4% Low-Income Housing Tax Credits (LIHTC) for the 257-unit 'Gallery at Lummus Parc' project.
This complex deal for the Related Group subsidiary also included Greystone procuring a Freddie Mac Forward Tax-Exempt Loan to refinance construction loan costs with LIHTC equity. Greg Voyentzie, CEO of GREC, explained that the 'Gallery at Lummus Parc' project demonstrates the impact that can be achieved when Greystone's affordable housing, tax credit, and agency financing capabilities are unified under one platform. He added that, in collaboration with Related Urban and colleagues within Greystone, they succeeded in structuring a comprehensive financing solution that supports the creation of much-needed affordable and workforce housing in the heart of Miami.
Sustainable Financing Structure
Jeff Englund, Executive Vice President at Greystone, elaborated that the Freddie Mac component of the deal offers a clear path to long-term permanent financing as the project progresses through construction and approaches stabilisation. The 'Gallery at Lummus Parc' project is located at 395 Northwest First Street and will comprise studio, one and two-bedroom apartments. Approximately 83 percent of the units are designated for households with incomes between 20 percent and 100 percent of the area's median income.
The community amenities include co-working spaces, a fitness club, a rooftop pool, BBQ areas, a pickleball court, and an outdoor fitness area. The project consists of two interconnected towers of 30 and 27 storeys. Completion is scheduled for late 2028. According to Greystone, the development benefits from its proximity to public transport, including the Government Center Metrorail station and the Miami Central Brightline station.
Collaboration as a Success Factor
Tony Del Pozzo, Vice President of Finance at Related Urban, emphasised that the realisation of a development of this magnitude requires strong collaboration and a well-considered capital structure. He highlighted that Greystone's ability to provide construction loans, LIHTC equity, and a path to long-term Freddie Mac financing was crucial for the project's progress.
