9 March 2021
Grosvenor Americas’ Structured Development Financing program marks its 20th year
Grosvenor Americas has provided financing for 72 residential development projects across North America since 2000.
Grosvenor Americas (Grosvenor) has been building, buying, managing and improving properties in North America for 69 years. 2020 marked the 20-year milestone of the firm’s Structured Development Finance (SDF) business, which provides capital to leading residential developers in select markets. The program has financed the completion of over 5,600 residential units worth $4.6bn in gross development value since its inception.
Grosvenor’s SDF program was established to address a shortage in supply of good quality mid-market housing in gateway cities in the US and Canada. The Company employs their Development, Investment and Asset Management expertise as they deploy capital via the SDF program, providing up to 80-90% of the equity for residential-led developments. Last year alone, the program financed over 1,000 residential units including The Bond with MainStreet Development in Seattle; Belpark with Intracorp Homes in Vancouver; and The Bower with PN Hoffman in Washington, D.C.
Intracorp Homes' Belpark, Vancouver
“In recent years, escalating construction costs and permitting delays have made financing conditions challenging. However, the pandemic has caused housing starts to fall and the demand and supply imbalance could become even more acute if developer pipelines do not remain full,” said Alex Henderson, SVP of Co-Investment at Grosvenor Americas.
The firm’s in-house research points to favorable market conditions within the next 36 months and the SDF team are actively seeking partnerships for development projects in Washington, D.C., San Francisco, Los Angeles, Seattle, and Vancouver that will deliver in 2023 and beyond. Over the next decade, the group aims to expand the program into new North American markets.
MainStreet's The Bond, Seattle
Grosvenor is committed to champion and advocate for a more diverse supply chain in the development projects with which the SDF team invests. In 2019, Grosvenor became corporate members of The Women's Business Enterprise National Council (WBENC) and The National Minority Business Council (NMSDC) and have been working with developer partners to understand existing challenges within the procurement process to support a more diverse supply chain and encourage a more inclusive tender process.
“Our commitment to supply chain diversity not only makes business sense but has a wider social benefit: it positively impacts local communities and provides opportunities for under-represented businesses to succeed,” said Mr. Henderson.
PN Hoffman's The Bower, Washington, D.C.
Grosvenor has $3.8bn of assets under management and a $3.2bn development pipeline. The Company has built, acquired or financed over 11,000 homes in the US and Canada and also operates a portfolio of office, industrial and retail properties.