INDIANAPOLIS AND LOS ANGELES — Milhaus, a multifamily developer and operator based in Indianapolis, has completed its merger with SRG Residential, a subsidiary of Sares Regis Group based in Newport Beach. The combined company totals 1,400 employees and includes 50,000 apartments under management — 46,000 of which come from 190 properties managed by SRG Residential — as well as a development pipeline exceeding $2.5 billion.
The combined company, which will be operated under the Milhaus platform, plans to start eight development projects this year totaling more than 2,000 new units in Southern California, Denver and Phoenix, giving Milhaus a presence in more than 20 markets across the country.
Chris Payne, former CEO of SRG Residential, joins Milhaus as both the chief development officer and a shareholder. Jeff Bailey, president of property management at SRG Residential and a shareholder, now leads the property management group at Milhaus.
“This partnership is a natural fit,” says Tadd Miller, CEO of Milhaus. “SRG Residential brings a best-in-class, high-touch approach to property management and operations along with a quality development pipeline and seasoned leadership, while Milhaus contributes a high-quality owned portfolio and disciplined development and capital markets infrastructure.”
“We are unlocking powerful synergies and long-term opportunities for our teams, partners and residents,” adds Payne.
The merger is a targeted approach by Milhaus to grow its third-party management vertical. The firm entered the space late last year with its acquisition of Central Florida-based ContraVest.
In addition to the SRG Residential merger, Milhaus also announced its agreement to acquire Broadshore Capital Partners, a Los Angeles-based investment management and lending platform with $1 billion in assets under management. Broadshore’s client base includes large pension funds, insurance companies and international institutional investors investing directly in the United States.
“Broadshore brings a strong reputation and a proven investment track record across multiple cycles that complement our vertically integrated model,” says Miller.
Upon closing, which is expected for later this summer, Broadshore CEO Brad Howe will become chief investment officer and shareholder at Milhaus, along with Broadshore principals Russell Munn and James Pomeranz.
Following the closing of the Broadshore acquisition, Milhaus will operate offices in Indianapolis, Newport Beach, Los Angeles, New York City, Orlando and Phoenix. Milhaus says that the SRG Residential and Broadshore additions give the company a more durable balance sheet, cycle-tested leadership and greater access to a diverse pool of development and investment opportunities across the country.
— John Nelson