Banyan Street, EII Realty Form New Investment Manager

The freshly minted vehicle, Banyan Street Real Estate Funds LLC, will focus on value-add and opportunistic strategies under the guidance of two former Ell Realty executives.
Briar Creek Apartments
Briar Creek Apartments

Banyan Street Capital and EII Realty Corp. have partnered on the establishment of Banyan Street Real Estate Funds LLC, a real estate investment manager centered on value-add and opportunistic strategies. BSREF acquired Ell Realty’s private real estate business from EII Capital Holding Inc. for an undisclosed amount.

Banyan and EII Realty have a history; the firms have been investing together for more than 15 years. “We decided to join forces with Banyan Street Capital to form Banyan Street Real Estate Funds to diversify the sector offerings we could provide to our investors and expand our capital markets exposure,” Stuart Mackintosh, managing director & principal with Banyan Street Real Estate Funds, told Commercial Property Executive.

Central Pointe Apartments
Central Pointe Apartments

In addition to making direct investments, BSREF will invest in properties via commingled funds and separate accounts.

Industry veterans Mackintosh and Scott Prizer, both of whom previously served as principals with EII Realty before the formation of BSREF, will lead BSREF. “Joining the Banyan platform enables us to jointly expand our real estate fund business, including developing additional investment strategies for our clients,” Mackintosh said.

Present and future

BSREF begins with a portfolio of managed assets encompassing approximately 4,000 multifamily units and 3.5 million square feet of commercial space valued at a total of roughly $800 million. The group of properties includes Briar Creek Apartments and Central Pointe Apartments in Charlotte, N.C.

Looking ahead, BSREF’s plans for 2019 include the launch of a third value-add multifamily fund. The investment vehicle will concentrate on the sustainable renovation and preservation of affordable rental units.

Images courtesy of Banyan Street Real Estate Funds