Greystar Acquires Property Management Business of Alliance Residential, Including Future Business
CHARLESTON, S.C. AND PHOENIX — Multifamily development and management firm Greystar Real Estate Partners has acquired the property management business of competitor Alliance Residential Co., the fourth-largest apartment management firm in the United States. Financial terms of the transaction were not disclosed, but The Wall Street Journal reports that the all-cash deal totaled nearly $200 million.
Phoenix-based Alliance Residential will shift its focus from property management to development, construction and acquisition across the multifamily spectrum, including workforce housing and seniors housing. As part of the deal, Greystar will provide management services to Alliance Residential’s owned portfolio going forward, including both new developments and acquisitions.
Alliance Residential has been the No. 1 developer of multifamily units in the United States for the last two years, and Greystar is the largest apartment management firm in the country, according to the National Multifamily Housing Council.
The combined property management business will operate under the Greystar brand, bringing the Charleston-based firm’s total unit count to 660,000. The combined portfolio comprises 2,400 properties in 42 states and 13 countries. Additionally, the acquisition will bring Greystar’s workforce to nearly 19,000 team members.
The acquisition boosts Greystar’s property management business by approximately 25 percent and gives the company a stronger presence in the Western United States, specifically the San Francisco Bay Area, Los Angeles, Phoenix, Denver and Las Vegas. The company is adding 500 apartment communities comprising nearly 130,000 Class A units in 21 states from Alliance Residential.
“In Alliance, we see an impressive team with a similar operating philosophy, core values, and ‘people-centered’ approach to property management, and this transaction provides us with the ability to capitalize on a number of innovative opportunities in today’s dynamic environment,” says Andrew Livingstone, executive managing director of Greystar. Livingstone oversees the firm’s Property Management Group.
Greystar manages and operates an estimated $200 billion of real estate in nearly 200 markets globally and has offices throughout the United States, United Kingdom, Europe, Latin America and the Asia-Pacific region. Founded in 1993, the company owns approximately $35 billion of assets, including nearly $15 billion of projects under development.
Alliance Residential has 35 regional offices throughout the United States. The company develops under the Broadstone, Prose, Marvelle and Holden brands.
— John Nelson