N.Y. firm partners with local developer on up to $150M investment on Lehigh Valley properties
A developer and a real estate investment management firm are planning to spend big money in the Lehigh Valley.
Greystone Capital, based in Bethlehem, and New York-based Black Bear Asset Management have formed a joint venture to invest up to $150 million in regional residential and commercial properties.
The venture seeks to acquire and develop multifamily and industrial properties in the Lehigh Valley.
BBAM will provide investment capital while Greystone Capital will act as the property developer, property manager and also provide some capital on future deals.
Greystone Capital President Lou Pektor owns several development companies that currently have ongoing projects in the Lehigh Valley, including River Pointe Logistics Center, a planned industrial park on over 800 acres in Upper Mount Bethel Township that has drawn heavy opposition from residents who argue it is a bad fit for the rural municipality.
The joint venture recently acquired Polk on Third, which is a mixed-use property at 310-322 E. Third St. in Bethlehem.
BBAM also purchased Sullivan Parke located at 2280 Lafayette Park Drive in Forks Township. Sullivan Parke consists of four apartment buildings on about 7 acres.
“We are pleased to make a second investment with Greystone Capital,” BBAM’s senior managing director Bryan Manz said in a statement. “The Lehigh Valley is a rapidly growing market and we are delighted to be a part of it via our relationship with Greystone and their portfolio of properties across multiple asset classes.”
Greystone Capital plans to build a seven-story mixed-use property adjacent to the Polk on Third building on the corner of Third and Polk streets in Bethlehem. The first two floors will be retail space and the top floor will consist of studio, one-bedroom and two-bedroom apartment units.
“We are really trying to push the market to a high-end, higher quality product,” Pektor said. “We’ve learned that students, graduate students, and staff will pay for high-quality units and they will pay to be close to convenience. The more foot traffic and more residential units we can put in that approximate area is good for everyone.”
Greystone Capital also has submitted development plans in Easton. The plan is to raze the Harmony Press building at 717-719 W. Berwick St. and build a 4-story apartment complex.