Sumitomo Forestry America, a housing and wood products subsidiary of Tokyo-based Sumitomo Forestry Co., has completed its acquisition of multifamily developer JPI. According to the firms, the acquisition strategically positions Sumitomo Forestry to expand its multifamily portfolio, making it the sixth-largest multifamily company in the nation based on the annual volume of units delivered.

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In 2022, the multifamily developer started construction on over 5,000 homes, coming in at No. 8 on the National Multifamily Housing Council’s 2023 top developers list and No. 11 on the association’s top builders list. With over 9,700 units under development, JPI’s work spans affordable, workforce, and market-rate housing.

“This partnership marks a pivotal moment for JPI, and I’m very excited for two primary reasons. This partnership not only establishes a resilient structure that supports JPI’s long-term vision and legacy but also involves a significant infusion in JPI’s working capital. This strategic move will tremendously enhance our business plan and drive future growth and sustainability,” said JPI CEO Payton Mayes.

JPI will retain its brand identify and will continue to operate from its headquarters in Irving, Texas, and regional offices in San Diego and Irvine, California. The agreement includes minority interests acquired by Mayes and Mollie Fadule, who will continue to have key leadership positions as CEO and chief financial and investment officer, respectively.

“Today, we officially welcome JPI to our team,” said Atsushi Iwasaki, head of Sumitomo Forestry’s U.S. operations. “As I’ve worked with JPI and their leadership, I have become very familiar with their passion for making an impact on communities, which is a value we share at Sumitomo Forestry. We are confident that this partnership, in combination with JPI’s rich history, has a bright future.”

Jones Lang LaSalle Securities and Norton Rose Fulbright US advised JPI on the transaction, and Perkins Coie served as legal adviser to Mayes and Fadule. For Sumitomo, Falls River Group and Zelman Partners, a subsidiary of Walker & Dunlop, served as financial advisers, and Vinson & Elkins served as legal adviser.

Since news of the impending acquisition in early October, JPI has had a busy start to the fourth quarter. In mid-October, the developer closed on land that will become the Jefferson Avenue community, with 852 units, in Murrieta, California. In November, it closed on Jefferson Westchester, an eight-story community that will provide 222 units in Inglewood, California, as well as Jefferson Eastchase, JPI’s fourth workforce housing project that will bring 398 units to Fort Worth, Texas.

JPI also has several new developments that are now leasing, including Class A communities Jefferson Cove, with 382 units, Grand Prairie, Texas, and Cedar Ridge, with 360 units, in Dallas. Two additional properties in lease-up are from JPI’s new line of senior developments: the 220-unit Parmore Fossil Creek in Haltom City, Texas, and the 185-unit Parmore Anna in Anna, Texas.