PALMER TWP., Pa. — A $110 million residential development born out of a joint venture is headed to Palmer Township, with construction set to begin as early as 2026.
Black Bear Asset Management and Greystone Capital, handing investments on the capital side and property development operation respectively, announced the 320 multifamily apartments and 92 for-sale townhomes project this week.
“We’re excited to launch our largest development yet in partnership with BBAM, building on a proven track record of successful execution.”Greystone Capital President Lou Pektor
The venture marks the third partnership between the companies, which invested $148 million across the projects.
The new ground-up project, set to be constructed at 1492 Van Buren Road in Palmer, is in pre-development, with all approvals secured, the partnership said.
Construction is expected to begin in the first quarter of 2026, it said.
“We’re excited to launch our largest development yet in partnership with BBAM, building on a proven track record of successful execution,” Greystone Capital President Lou Pektor said.
“Black Bear Asset Management has been an exceptional partner, and together we’ve rapidly assembled a best-in-class portfolio throughout the Lehigh Valley.”
Premiere living aesthetic
The multifamily community will have seven class-A garden-style apartment buildings featuring the apartments and townhomes.
Designs are focused on a premier living aesthetic, with upscale amenities including a fully equipped fitness center, clubhouse, green spaces, ample parking, storage options and elevator access on every floor.
Open-concept units will offer high-quality finishes and appliances, private balconies or patios, in-unit washers and dryers, and large walk-in closets.
“We’re excited to continue building on our successful partnership with Greystone Capital. Their deep market knowledge and track record of execution make them an ideal partner as we expand our footprint in the Lehigh Valley.”Black Bear Asset Management Senior Managing Director Bryan Manz
Black Bear Capital Partners, a subsidiary of BBAM, served as the advisor for the land acquisition, arranging an 18-month, $6 million senior loan with Stormfield Capital featuring full-term interest-only payments.
In addition, BBAM, together with Carlton Associates Inc., provided $5 million in preferred equity and a $7.57 million credit facility.
The subordinate financing also carries an 18-month term with a fixed rate and full-term interest-only structure.
The combined financing — arranged by Bryan Manz and Emil DePasquale of BBCP — represents 90% loan-to-cost and will be used to acquire the land and fund a working capital facility to advance site preparation for development, officials said.
“We’re excited to continue building on our successful partnership with Greystone Capital,” BBAM Senior Managing Director Bryan Manz said.
“Their deep market knowledge and track record of execution make them an ideal partner as we expand our footprint in the Lehigh Valley.”
Venturing further into Lehigh Valley
Under a separate joint venture agreement, in 2023 the partnership completed Sullivan Parke, a 102-unit multifamily community at 2250 Lafayette Park Drive, Forks Township.
The project was delivered on time and on budget across three construction phases, with a development cost of $250,000 per unit.
“Sullivan Parke stands as a compelling proof of concept for the viability and strong market demand of our multifamily strategy with Greystone Capital."Bryan Manz of Black Bear Capital Partners
The sponsors ultimately exited the investment through a record-breaking sale in that market at $350,000 per unit, exceeding initial projections.
“Sullivan Parke stands as a compelling proof of concept for the viability and strong market demand of our multifamily strategy with Greystone Capital,” Manz said.
“Its successful delivery and record-breaking sale reinforce the potential for continued success as we advance our next development in the region, where we plan to replicate the proven business plan.”
The pair also worked together on a joint acquisition of Polk on Third, a $14 million mixed-use property near Lehigh University.
But Greystone and BBAM said they aren’t resting on their laurels.
$750 million more in pipeline
A 200-unit multifamily project with a $60 million investment is expected to close soon, and the duo is looking into developing a half-million square feet of industrial space.
Greystone, based in Bethlehem, has successfully developed more than $200 million in residential projects across the Lehigh Valley.
BBAM/BBCP, which services transactions across all property types, closed numerous complex refinance packages in excess of $1 billion in 2024 despite challenging market conditions.
The firm, which has offices in New York, New Jersey, Chicago and, most recently, Boca Raton and Tampa, Florida, continues to expand its national platform and market penetration.
BBCP currently has $750 million more in the pipeline, and said it aims to ramp up activity in the wake of closing numerous financing packages for clients across the country.
