Charleston, S.C.-based Greystar Real Estate Partners has nabbed a spot as one of the country’s largest property management firms after announcing its acquisition of the management division of Irving, Texas-based JPI. The acquisition is the second business unit divestiture at JPI since the end of 2008.
The JPI management portfolio, which includes more than 41,000 units across Texas, California, the Pacific Northwest, the Midwest, and the Northeast, gives Greystar a national footprint in 88 metro markets and boosts its units under management count to more than 140,000. That unit count will likely rank the firm as one of the nation’s three largest property management companies. As part of the deal, all 1,150 JPI Management Services associates will become members of the Greystar team.
“We are really pumped,” says Greystar chairman and CEO Bob Faith. “This rounds us out in every single major market in the country, and, from those toeholds, we hope to grow. Our goal before this transaction was to have a presence in every major market, and now we have had to upgrade that goal to be the No. 1 or No. 2 [property management company] in those markets.”
The deal signals continued divestiture activity at JPI over the course of recent weeks. On Dec. 29, 2008, Carrollton, Texas-based multifamily technology products and services provider RealPage acquired the JPI Resident Solutions team of multifamily technology advisors, led by industry veteran Henry Pye.
Faith says that the debt-free Greystar did not have to borrow any capital to complete the management deal but would not otherwise divulge the financial terms of the acquisition. “Maybe we got knocked in the past for not growing quickly in the go-go-go times,” he says. “But it feels good now to not be sweating any bullets on debt that is coming due.”
JPI will continue as the owner/operator of a $2 billion portfolio of Class A apartment communities. The firm did not respond to requests for additional comments.