Jackson Walker acted as the primary legal representative for New York-based client Foundation for Affordable Rental Housing Holdings Inc. (d/b/a Harmony Housing), a 501(c)(3) organization established by Stephen Rosenberg, CEO and founder of Greystone, in the disposition of a national portfolio of 121 affordable housing projects to The Michaels Organization and related affiliates for approximately $1.36 billion. This transaction marked a historic milestone as the largest ever undertaken in the history of Harmony Housing.
The transaction was intricate, encompassing various elements, including:
- Assignment of approximately $760 million in Fannie Mae debt.
- $72.1 million in seller-financing.
- Equity participation in future sales of a substantial portion of the portfolio.
- Negotiation of loan payoff, yield maintenance, and substitution collateral related to deleted properties and deferred closings.
- Removal from the portfolio and separate negotiation for the sale of one property experiencing casualty damage during the pendency of the transaction.
“This transaction was a monumental achievement for Harmony Housing and Greystone Property Management Corporation, the property manager for substantially all of the housing projects in the portfolio, and was highlighted by an incredible collaborative effort between the Harmony Housing and Jackson Walker teams,” said Houston real estate partner David W. Parker, who led the Jackson Walker team. “Navigating the intricacies of such a large portfolio of properties is never an easy feat, but the individuals and teams involved allowed the process to run smoothly and efficiently and enabled us to achieve a historic result. We are proud and honored to have assisted Harmony Housing in this endeavor. Harmony Housing’s commitment to providing affordable rental housing for low and moderate-income families and the elderly should be applauded.”
“Navigating the intricacies of such a large portfolio of properties is never an easy feat, but the individuals and teams involved allowed the process to run smoothly and efficiently and enabled us to achieve a historic result.”
“Jackson Walker served a critical role as our legal advisor in this large and complex transaction. Their expertise, professionalism, and team-first approach was invaluable,” said Allison Berman, vice president and general counsel of Harmony Housing.
Harmony Housing is a mission-driven non-profit owner of affordable multifamily projects focused on the acquisition and preservation of affordable housing properties serving low- and moderate-income families and the elderly. Greystone Property Management Corporation serves as the manager of Harmony Housing’s portfolio of properties.
In addition to David W. Parker, the Jackson Walker team included Taylor A. Lamb, Elizabeth C. Cone, Mahira Khan, Maggie V. Lu, Abigail E. Hogan, Tim Dominguez, Clinton J. Kuykendall, and Caroline Capili.
To learn more about the transaction, view Essential Housing Impact Partnership Acquires 90 Affordable Communities | Newswire.
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