Houlihan Lokey Advises Greystone Select Holdings
Houlihan Lokey is pleased to announce the successful acquisition of America First Capital Associates Limited Partnership Two (AFCA) by Greystone AF Manager LLC and Greystone AF Holdings LLC, indirect subsidiaries of Greystone Select Holdings LLC (collectively, Greystone), as well as the successful placement of a secured credit facility to support the acquisition. Houlihan Lokey advised Greystone on the acquisition of AFCA and served as exclusive placement agent for the financing. AFCA is the General Partner of America First Multifamily Investors, L.P. (NASDAQ:ATAX; ATAX). Greystone purchased AFCA from Burlington Capital for $80 million in cash. The transaction closed on September 10, 2019.
The acquisition of AFCA represents a natural extension of Greystone's core asset management business, adding a direct bond purchase platform to Greystone's robust origination platform. The ATAX team's expertise in direct unrated tax-exempt bonds and other alternative capital products, combined with Greystone's deep expertise and capabilities in affordable housing finance, presents a compelling opportunity to build on the success of ATAX to date. Following the sale of AFCA, all ATAX employees will remain with ATAX.
Founded in 1988 and headquartered in New York City, Greystone is a leading real estate lender focused on the multifamily and healthcare sectors. Greystone employs approximately 5,500 people across 24 states and has a $35 billion servicing portfolio. Greystone's Senior Debt Opportunity Fund (GSDF) is a $1.5 billion fund that invests in first mortgage and mezzanine loans secured by multifamily housing and senior healthcare properties. Investment opportunities are sourced by Greystone's national origination network, consisting of 105 loan originators across 22 loan origination offices.
Founded in 1998, ATAX is a publicly traded partnership that primarily invests in tax-exempt mortgage revenue bonds (MRBs) issued by state and local housing finance agencies and secured by multifamily rental housing properties, which provide construction and/or permanent financing for affordable multifamily and student housing properties and limited commercial properties. ATAX also makes minority equity investments in affordable and moderate income rental housing properties. As of June 30, 2019, ATAX had 76 mortgage revenue bonds with an aggregate outstanding principal of $683 million and more than $1 billion in total assets.
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