Greystar Sells National Multifamily Portfolio to Blackstone for $2 Billion
Press Release
December 8, 2015
High-quality, nationally-diversified portfolio comprised of 32 apartment communities totaling 10,399 units
Greystar Real Estate Partners, LLC (“Greystar”), a global leader in the investment, development, and management of rental housing properties, today announced that Greystar Equity Partners VII, L.P. (“GEP VII”) has agreed to sell a 32-property, 10,399-unit multifamily portfolio to Blackstone Real Estate Partners VIII for $2.0 billion, or approximately $192,000 per unit. With the sale, Greystar has successfully monetized its investments in GEP VII.
“We worked diligently to assemble a high-quality portfolio of well-located apartment communities in major institutional markets,” said Bob Faith, Chairman and CEO of Greystar. “We are very pleased with the outcome of the transaction and believe the level of interest this portfolio generated is a testament to our core competency of sourcing underperforming assets and creating value through operational improvements and comprehensive capital renovation strategies.”
Comprising a mix of mid-rise, high-rise and garden-style apartment buildings, the portfolio is nationally-diversified with assets located in high-barrier-to-entry markets, including Seattle, San Francisco, Los Angeles, South Florida, New York, and Boston metros.
GEP VII was formed as part of Greystar’s flagship value-add acquisition fund series with a focus on buying well-located, institutional quality apartment communities in major markets throughout the U.S. that present significant upside potential through operational improvements and capital renovations. A $600 million commingled fund, GEP VII held its final close in 2011 with commitments from a diverse group of global institutional investors. In June 2014, Greystar announced the final close of Greystar Equity Partners VIII, L.P. (“GEP VIII”), an $800 million successor fund that is now fully invested.
Mr. Faith continued, “We continue to believe in the long-term fundamentals of the multifamily industry given strong secular demand trends and barriers against widespread overdevelopment. We will continue to leverage our proprietary insight, local market expertise, and deep industry relationships to identify additional attractive value-add investments.”
The transaction was competitively bid with Holliday Fenoglio Fowler, L.P. (HFF) acting on behalf of Greystar. Per the terms of the transaction agreement, Greystar will continue to serve as property manager.
About Greystar
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and property management of rental housing properties globally. Headquartered in Charleston, South Carolina with offices throughout the United States, Europe, and Latin America, Greystar is the largest operator of apartments in the United States, managing approximately 410,000 units in over 130 markets globally. Greystar also has a robust institutional investment management platform dedicated to managing capital on behalf of a global network of
institutional investors with over $12 billion in gross assets under management including $3.9 billion of developments underway. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world class service in the rental housing real estate business. To learn more about Greystar, visit www.greystar.com.
Media Contact:
Tim Cook, Managing Director, Corporate Communications
813-864-1989
tcook@greystar.com
Greystar Real Estate Partners, LLC (“Greystar”), a global leader in the investment, development, and management of rental housing properties, today announced that Greystar Equity Partners VII, L.P. (“GEP VII”) has agreed to sell a 32-property, 10,399-unit multifamily portfolio to Blackstone Real Estate Partners VIII for $2.0 billion, or approximately $192,000 per unit. With the sale, Greystar has successfully monetized its investments in GEP VII.
“We worked diligently to assemble a high-quality portfolio of well-located apartment communities in major institutional markets,” said Bob Faith, Chairman and CEO of Greystar. “We are very pleased with the outcome of the transaction and believe the level of interest this portfolio generated is a testament to our core competency of sourcing underperforming assets and creating value through operational improvements and comprehensive capital renovation strategies.”
Comprising a mix of mid-rise, high-rise and garden-style apartment buildings, the portfolio is nationally-diversified with assets located in high-barrier-to-entry markets, including Seattle, San Francisco, Los Angeles, South Florida, New York, and Boston metros.
GEP VII was formed as part of Greystar’s flagship value-add acquisition fund series with a focus on buying well-located, institutional quality apartment communities in major markets throughout the U.S. that present significant upside potential through operational improvements and capital renovations. A $600 million commingled fund, GEP VII held its final close in 2011 with commitments from a diverse group of global institutional investors. In June 2014, Greystar announced the final close of Greystar Equity Partners VIII, L.P. (“GEP VIII”), an $800 million successor fund that is now fully invested.
Mr. Faith continued, “We continue to believe in the long-term fundamentals of the multifamily industry given strong secular demand trends and barriers against widespread overdevelopment. We will continue to leverage our proprietary insight, local market expertise, and deep industry relationships to identify additional attractive value-add investments.”
The transaction was competitively bid with Holliday Fenoglio Fowler, L.P. (HFF) acting on behalf of Greystar. Per the terms of the transaction agreement, Greystar will continue to serve as property manager.
About Greystar
Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and property management of rental housing properties globally. Headquartered in Charleston, South Carolina with offices throughout the United States, Europe, and Latin America, Greystar is the largest operator of apartments in the United States, managing approximately 410,000 units in over 130 markets globally. Greystar also has a robust institutional investment management platform dedicated to managing capital on behalf of a global network of
institutional investors with over $12 billion in gross assets under management including $3.9 billion of developments underway. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world class service in the rental housing real estate business. To learn more about Greystar, visit www.greystar.com.
Media Contact:
Tim Cook, Managing Director, Corporate Communications
813-864-1989
tcook@greystar.com