Multifamily leader Greystar has formed a long-term property management services relationship with developer and builder Wood Partners. Terms of the transaction were not disclosed.
Under the agreement, Wood Partners’ property management operations will be transferred to Greystar, and 600 Wood Property Management associates will transition as Greystar team members. In addition, the agreement calls for Greystar to serve as property manager for all current and future Wood-developed and owned communities.
Wood Partners, which was ranked No. 4 on both the National Multifamily Housing Council’s 2023 top builders and developers lists, has a managed portfolio with over 130 Class A multifamily properties totaling 38,000 units, including both operating and planned projects, in 17 states.
Wood Partners’ portfolio will grow Greystar’s property management presence to over 895,000 units in over 3,200 communities and will bring its team to over 24,000 members. Greystar, No. 1 on the NMHC’s 2023 top managers list, touted 726,826 units under management at the start of 2023.
“Greystar’s well-established track record of strategic client relationships underscores why prominent developers and owners are choosing to partner with Greystar to lease and manage their assets,” says Mike Clow, executive managing director of Greystar’s U.S. Real Estate Services. “This association aligns with our goal of expanding and capitalizing on innovative opportunities in today’s dynamic environment. Greystar is committed to establishing the benchmark for operational excellence and leveraging our deep understanding of local markets, the advantages of economies of scale, and state-of-the-art, technology-driven solutions.”
Clow says the relationship also provides stability for both partners as well as the employees. He says a big challenge in the industry has been turnover when properties get sold and new management comes on to the sites.
“[Wood Partners is] going to own, and they are going to keep building. This allows us to have a long-term horizon for stability not only for Greystar but for the employees working at the properties,” he says. “For Wood Partners, it gives them a stable manager as well—a tried-and-true manager in those markets with a lot of depth. Now any new markets they build in, they will have a [property management] presence.”
He adds that it also provides the employees coming from Wood Partners growth opportunities, with options to work at other communities managed in the same market or transfer to another market as well as the opportunity for variety, from student housing to active-adult communities from stabilized properties to those in lease-up.
“We are excited to forge this new strategic partnership with the Greystar property management team. Greystar is widely recognized as an industry leader within the property management space,” says Wood Partners CEO Joe Keough. “Their collaborative approach throughout the integration process will pave the way for success not only for our robust portfolio of properties, but most importantly, the dedicated associates that make up our talented property management team.”
Similar to this partnership agreement, Greystar expanded its portfolio with the acquisition of Alliance Residential’s property management business in 2020. In 2014, Greystar acquired Riverstone Residential in a blockbuster deal.
“When we have done these partnerships, we have learned more. It helps us stay cutting edge. We pick up new team members, and they bring us new ideas. We’re always a better company when we do these,” says Clow. “We learned from Alliance, and we’ve learned from Wood. We are a company that wants to grow and get better.”
Jones Lang LaSalle Securities, an affiliate of Jones Lang LaSalle Americas, served as financial adviser to Wood Partners in connection with the transaction.