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Sumitomo Forestry America, a housing and wood products subsidiary of Tokyo-based Sumitomo Forestry Co., has entered into a definitive agreement to acquire multifamily developer JPI’s operating platform. In addition, minority interests will be acquired by JPI CEO Payton Mayes and chief financial and investment officer Mollie Fadule.

JPI will retain its name and headquarters in Irving, Texas, as well as offices in San Diego and Irvine, California. Under the leadership team of Mayes and Fadule, it will operate autonomously within Sumitomo Forestry and maintain management over all assets under construction until their completion and realization.

“My relationship with Atsushi Iwasaki, the leader of Sumitomo Forestry’s U.S. operations, dates back to 2014. Each interaction we’ve had with the Sumitomo Forestry team in the U.S. and Tokyo has been marked by mutual respect and shared goals,” said Mayes. “Sumitomo’s consistent partnership and investment in JPI projects since 2019 is a testament to their confidence and faith in our vision. This acquisition amplifies JPI’s influence in the housing sector and charts a definitive path for JPI’s sustained growth.”

In 2022, the leading 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 collaboration with JPI is a significant milestone in our continued commitment to fostering sustainable communities,” said Iwasaki. “The shared values and vision between Sumitomo Forestry and JPI cement this partnership’s potential. We’re looking forward to a future filled with innovative, impactful communities across the income spectrum.”

Sumitomo is not a stranger to the U.S. real estate business. Since the early 2000s, it has been focused on the single-family business, with five affiliated home builders—MainVue Homes, Edge Homes, Brightland Homes, Bloomfield Homes, and DRB Group. To expand its commercial real estate business, it acquired Crescent Communities in 2018. In addition, according to Fadule, Sumitomo has committed over $200 million in seven JPI communities within the last four years.

The acquisition is expected to be finalized in the fourth quarter. Jones Lang LaSalle Securities and Norton Rose Fulbright US advised JPI on the transaction, and Perkins Coie served as legal advisor to Mayes and Fadule. For Sumitomo, Falls River Group and Zelman Partners, a subsidiary of Walker & Dunlop, served as financial advisors, and Vinson & Elkins served as legal advisor.