Greystar Closes on $800M Multifamily Acquisition Fund

Greystar Real Estate Partners has closed its Greystar Equity Partners VIII, a discretionary commingled fund focused on the acquisition of value-add multi-family assets in the United States.
wes fuller

Wes Fuller, Greystar

Greystar Real Estate Partners, of Charleston, S.C., has closed its Greystar Equity Partners VIII, L.P., a discretionary commingled fund focused on the acquisition of value-add multifamily assets in the United States, the company announced Wednesday.

This final close brings total equity commitments to $800 million, with contributions from investors ranging from domestic and international pension plans to private wealth managers. GEP VIII is Greystar’s most recent fund offering and follows Greystar Equity Partners VII, L.P., a $600 million value-add fund that is fully invested with concentrations in major markets nationwide.

“The recent expansion of our operating platform gives us even greater depth throughout the major markets in the U.S., which will further enhance our ability to identify and execute on attractive investment opportunities for our investors,” Greystar chairman/CEO Bob Faith said in a release.

Faith was referencing, of course, Greystar’s acquisition of competitor Riverstone Residential Group from London-based CAS Capital Ltd.for undisclosed terms. The acquisition made Greystar the leading multifamily real estate services company in the United States and possibly the world, with more than 385,000 apartment units under management in major markets throughout this country, the United Kingdom and Mexico.

“Greystar looks to leverage its vertically-integrated platform to identify mismanaged or undercapitalized communities in which the company’s management and renovation expertise can drive meaningful value enhancement,” Wes Fuller, executive managing director of investments for Greystar, told Commercial Property Executive.

Specifically, he explained, the company focuses on acquiring apartment communities “often times through an off-market or broken marketing process,” with the expectation that Greystar’s “operational expertise can drive operating efficiencies.”

Geographically, Fuller continued, “we focus on major U.S. markets that exhibit potential for prolonged periods of excess demand. Specifically, we strategically focus on markets with robust employment growth driven by concentrations to key outperforming industries and that exhibit barriers to new supply.”

GEP VIII’s strategy is “to aggregate a nationally diversified portfolio of high-quality multi-family assets in target markets that are poised for outperformance,” according to Greystar. GEP VIII currently has allocated about $150 million toward a seed portfolio of 10 properties, including an asset in Los Angeles and a collection of value-add opportunities in markets with high exposure to domestic energy employment, including Houston and Dallas.