Tag Archives: greystar

Greystar Shopping $1.2 Billion Apartment Portfolio Throughout 3 Core Markets

13-Property Assemblage Includes Communities in the Greater Washington, D.C., San Francisco and Los Angeles Markets

Visualized: Ellipse at Fairfax Corner, a 404-unit home in Fairfax, VA that is part of the 13-property portfolio sold by Greystar.Greystar Property Partners is shopping a 13-property apartment portfolio that is expected to command bids of about$1.2 billion. The Charleston, SC-based multifamily giant has employed

Eastdil Secured and Marcus & Millichap’s IPA department to market the 3,374-unit package, which includes residential or commercial properties in Washington, D.C.’s Northern Virginia suburban areas, greater San Francisco and Southern California. Sources stated the portfolio is likely to sell to several buyers as the plan consists of both more recent, core properties and Class B, value-added assets. Five of the properties remain in Northern Virginia, 6 remain in Northern California and 2 are located in

higher Los Angeles. All 3 of those core markets remain active for multifamily financiers despite almost a decade of growth. Meanwhile, a glut of new homes in the higher Washington DC area has actually brought Class B offerings-with

higher advantage through renovations-to the front of many financiers ‘shopping lists there, something the Greystar offering is stated to show. Both San Francisco and Los Angeles are tight rental markets where new construction hasn’t soured the higher-end of the rental market.

The homes available in those markets are Class An offers and priced appropriately, inning accordance with market gamers. IPA is stated to be dealing with the California possessions and Eastdil Protected is marketing the Virginia listings. The particular properties included in the sales offering were

not available. Across the board, the rosy principles the apartment or condo sector has actually enjoyed in the last few years are beginning to dim. Job is up, and rent growth is still favorable however slowing, inning accordance with first quarter information put together by CoStar. In spite of slower lease growth and increased lease incentives, sales of apartment homes are up. Through the first quarter of 2018, apartment sales of residential or commercial properties amounted to$ 35.3 billion, up from$32.9 billion

throughout the very same duration in 2015, according to CoStar details. However while current high levels of new multifamily building and construction and slowing home development might be taking a few of the shine off the rental sector, compared with other industrial realty sectors, apartment or condos remain an excellent bet.

Homeownership is still at historic lows, regardless of an uptick in the last year, and the steady stream of new building and construction dragging down fundamentals will likely relent in the coming 12 to 24 months, according to CoStar experts. Greystar signs up with Starwood Capital Group reported to be in the market planning to take advantage of continued investor demand for multifamily residential or commercial properties. Reports came out this week showing that Starwood has started marketing a 25-property portfolio worth about $1 billion through

HFF and CBRE.

Greystar-Led Fund Taking Monogram Residential REIT Private in $3 Billion Deal

New Multifamily Investment Fund Consists of Investors from The Netherlands, China and Canada

CEO Bob Faith hof Greystar Real Estate Partners is adding another 49 multifamily properties to his growing portfolio.
CEO Bob Faith hof Greystar Realty Partners is adding another 49 multifamily homes to his growing portfolio. Monogram Residential Trust, Inc.(NYSE: MORE), an owner and operator of apartment neighborhoods mostly located in seaside markets, agreed to be obtained by a freshly formed perpetual life fund, Greystar Development and Income Fund, led by Greystar Realty Partners in a transaction valued at $3 billion, including financial obligation to be presumed or re-financed.

Investors in the brand-new fund consist of Dutch pension fund APG Property Management NV, Singapore-based international investment firm GIC, and Quebec-based CRE financier IvanhoƩ Cambridge.

Based in Plano, TX, Monogram owns a portfolio of investments in 49 multifamily neighborhoods in 10 states totaling 13,674 systems.

A ranking of the largest US apartment owners by the National Multifamily Real estate Council for 2017 lists Charleston, SC-based Greystar as the 19th biggest owner with 44,037 units. Greystar is also ranked as the biggest home manager with 415,634 units under management.

Under the arrangement, which was unanimously authorized by Monogram’s board, stockholders will receive $12 per share in cash, a premium of 22% to Monogram’s closing stock rate of $9.80 on July 3.

The $3 billion value consists of Monogram’s share of its 2 institutional co-investment joint endeavors with PGGM and NPS. The PGGM joint endeavor will be restructured, and the joint endeavor interests held by NPS will be purchased by Greystar under a separate assignable purchase and sale agreement for around $500 million.

“Through this deal, Monogram will transition from being a publicly traded REIT to an independently held company and a part of the Greystar company,” Mark T. Alfieri, CEO of Monogram wrote to workers yesterday announcing the news. “We believe this transaction offers our stockholders with instant and compelling value for their investment, and shows the effort and commitment of all the workers at Monogram.”

“We are thrilled to add Monogram’s high quality assets in some of the best markets in the country as the seed portfolio for Greystar Growth and Earnings Fund, LP, our flagship core-plus perpetual life lorry,” stated Bob Faith, the founder and chairman of Greystar.

The deal is not contingent on invoice of funding by Greystar. JPMorgan Chase Bank, N.A. has actually provided a commitment letter to Greystar Growth and Earnings Fund for $2 billion in financial obligation financing for the transaction.

The Greystar fund retained Walker & & Dunlop Inc. (NYSE: WD) to secure financing for its acquisition. This will be the biggest transaction in Walker & & Dunlop’s history.

Home REIT assessments stand near all-time highs, regardless of steady brand-new supply that stays a near term headwind, inning accordance with initial analysis of the deal by Morgan Stanley Research.

“We think the transaction continues to illustrate that private financiers are looking past near term supply headwinds and are more optimistic about the longer term outlook offered encouraging basics,” Morgan Stanley Research study reported.

Morgan Stanley is acting as exclusive monetary consultant. Morrison & & Foerster is representing Morgan Stanley in the financing. Goodwin Procter LLP is acting as legal advisor to Monogram. J.P. Morgan Securities LLC is working as unique monetary advisor and Jones Day is serving as legal consultant to Greystar.

The transaction, which is anticipated to close in the 2nd half of 2017, is subject to approval by Monogram’s stockholders and other customary closing conditions.


Greystar-Led Fund To Get Monogram Residential for $3 Billion

CEO Bob Faith hof Greystar Real Estate Partners is adding another 49 multifamily properties to his growing portfolio.
CEO Bob Faith hof Greystar Realty Partners is including another 49 multifamily homes to his growing portfolio. Monogram Residential Trust, Inc. (NYSE: MORE), an owner, operator and developer of high-end home communities in select coastal markets, agreed to be acquired by a recently formed perpetual life fund, Greystar Growth and Income Fund, led by Greystar Realty Partners in a deal valued at $3 billion, including debt to be presumed or re-financed.

Establishing investors in the fund consist of capital partners: Dutch pension fund APG Asset Management NV, Singapore-based global investment company GIC; and Quebec-based CRE financier IvanhoƩ Cambridge,

Plano, TX-based Monogram owns a portfolio that consists of financial investments in 49 multifamily communities in 10 states totaling 13,674 apartment or condo homes.

The National Multifamily Housing Council’s 2017 rankings noted Charleston, SC-based Greystar as 19th biggest owner of apartment or condos in the United States with 44,037 units and the biggest manager of apartment or condos with 415,634 units under management.

Under the terms of the merger arrangement, which was all authorized by Monogram’s board, shareholders will receive $12 per share in cash. This represents a premium of 22% to Monogram’s closing stock cost of $9.80 on July 3.

The $3 billion worth includes Monogram’s share of its two institutional co-investment joint endeavors with PGGM and NPS. The PGGM joint endeavor will be restructured, and the joint venture interests held by NPS will be purchased by Greystar pursuant to a separate assignable purchase and sale contract for roughly $500 million.

“Through this deal, Monogram will transition from being an openly traded REIT to an independently held company and a part of the Greystar organization,” Mark T. Alfieri, CEO of Monogram wrote to employees the other day announcing the news. “Our company believe this deal offers our investors with instant and compelling value for their financial investment, and reflects the effort and commitment of all the workers at Monogram.”

“We are excited to add Monogram’s high quality assets in a few of the very best markets in the country as the seed portfolio for Greystar Development and Income Fund, LP, our flagship core-plus continuous life lorry,” said Bob Faith, the creator and chairman of Greystar.

The transaction is not contingent on invoice of funding by Greystar. JPMorgan Chase Bank, N.A. has actually offered a commitment letter to Greystar Development and Earnings Fund for $2 billion in financial obligation financing for the transaction.

Home REIT assessments stand near all-time highs, leading some investors to question if they ought to rotate from the subsector, especially in the face of supply that stays a near term headwind, according to initial analysis of the deal by Morgan Stanley Research study.

“We believe the transaction continues to illustrate that personal financiers are looking past near term supply headwinds and are more optimistic about the longer term outlook provided encouraging principles,” Morgan Stanley Research reported.

Morgan Stanley & & Co. LLC is working as special financial advisor and Goodwin Procter LLP is acting as legal advisor to Monogram. J.P. Morgan Securities LLC is functioning as exclusive monetary advisor and Jones Day is functioning as legal advisor to Greystar.

The deal, which is expected to close in the second half of 2017, is subject to approval by Monogram’s stockholders and other traditional closing conditions.