PALMER TWP., Pa. — A joint venture between Greystone Capital and Black Bear Asset Management is in the market for a construction loan to fund a large-scale multifamily project in the Lehigh Valley.
Greystone and Black Bear last week announced their search for a $75 million construction loan, with Black Bear Capital Partners as a debt advisor.
The money would be used to build 320 multifamily units across seven garden-style buildings and 92 for-sale townhomes on a 31-acre site at 1492 Van Buren Road.News release
The money would be used to build 320 multifamily units across seven garden-style buildings and 92 for-sale townhomes on a 31-acre site at 1492 Van Buren Road, according to a news release.
The fully approved project is expected to break ground in early 2026.
The multifamily housing would feature a mix of one- and two-bedroom units across seven four-story buildings, along with a standalone clubhouse and structured parking.
Units would have open layouts with in-unit washer/dryers, private outdoor space, walk-in closets and upscale finishes including stainless-steel appliances, kitchen islands, quartz counters and designer fixtures, developers said.
Those apartments are expected to command premium rents for the area, averaging about $2,350 a month.
Developers are touting the project as an ideal location for those who commute to New York City or Philadelphia, saying it will sit in the midst of one of Pennsylvania’s fastest-growing multifamily submarkets.
Project marks pair's third venture
BBCP 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.
BBAM and Carlton Associates Inc. provided $5 million in preferred equity and $7.57 million credit facility.
The combined financing represents 90% loan-to-cost and will be used to acquire the land and fund a working capital facility to prepare the site for development, according to the pair.
The southeastern Northampton County area boasts a vacancy rate of just 3.2% and has seen cumulative rent growth of more than 30% in the past five years — nearly double the national average.Greystone and Black Bear release
Some of the $75 million being sought also would be used to retire existing debt, the release said.
Greystone will lead development and operations for the project, while BBAM will provide equity capital.
The southeastern Northampton County area boasts a vacancy rate of just 3.2% and has seen cumulative rent growth of more than 30% in the past five years — nearly double the national average, Greystone and Black Bear state.
It would mark the third joint venture between Greystone and BBAM, bringing the total capitalization across the portfolio to $148 million, they said
Greystone and BBAM continue to seek out development opportunities throughout the area, the release said.
Greystone, based in Bethlehem, said it has developed more than $200 million in residential projects throughout the Lehigh Valley, including townhomes, condominiums and active lifestyle communities.
BBAM/BBCP said it has closed numerous refinance packages in excess of $1 billion, despite current market conditions.
With another $750 million currently in the pipeline, BBCP said, it continues to ramp up its activity and has closed numerous financing packages in recent months on behalf of clients in Pennsylvania, New York, New Jersey and a dozen other states.