Greystar adds 130K units to management portfolio in $200M deal

Negotiations with Alliance Residential began in February

National /
Jun.June 02, 2020 10:15 AM
Alliance Chairman Bruce Ward and Greystar Chief Executive Bob Faith (Greystar, Alliance)

Alliance Chairman Bruce Ward and Greystar Chief Executive Bob Faith (Greystar, Alliance)

As large real estate deals across the country have fallen apart as a result of the coronavirus crisis, Greystar has closed on a 130,000 unit deal that solidifies its position as one of the biggest rental operators.

The South Carolina-based firm acquired the business that manages those units from Alliance Residential, the fourth largest apartment manager in the U.S., in a nearly $200 million all-cash deal, the Wall Street Journal reported. Alliance will remain in the business of developing and investing in apartments.

Greystar’s management inventory, which already had a major presence in Phoenix, Los Angeles, Houston and Seattle, now totals 660,000. The company also owns about 140,000 of its own units.

Greystar CEO Bob Faith told the Journal that his firm had the opportunity to back out of the deal in recent weeks, but opted to close at the previously agreed price.

The coronavirus’ impact on multifamily has so far not been as severe as initially expected, and Greystar — whose properties are on the higher end of the market — has collected about 95 percent of its rent for April and May.

“We’re in a pretty good spot,” Faith said. “It means that folks are either making good income or have good savings.”

Last week, Greystar was hit with a lawsuit by eight tenants in Los Angeles, who accuse the company of gathering financial and personal information without consent. [WSJ] — Kevin Sun


Related Articles

arrow_forward_ios
Sen. Brian Kavanagh (Getty, New York Senate)
Lawmakers propose tweaks to rent relief program, foreclosure protections
Lawmakers propose tweaks to rent relief program, foreclosure protections
Mitch Kossoff
“Ripe for abuse”: Real estate escrow funds may not be so secure after all
“Ripe for abuse”: Real estate escrow funds may not be so secure after all
Laurent Morali and renderings of the project (Kushner Companies)
Kushner Companies wins approval for four-tower mixed-use project in downtown Fort Lauderdale
Kushner Companies wins approval for four-tower mixed-use project in downtown Fort Lauderdale
Shore Park building with Gloria and Emilio Estefan (Douglas Elliman, Getty)
Ocean Drive property owned by Gloria and Emilio Estefan lists for $45M
Ocean Drive property owned by Gloria and Emilio Estefan lists for $45M
Blackstone CEO Stephen Schwarzman (Getty, iStock)
Blackstone buys San Diego apartment complexes in $1B deal
Blackstone buys San Diego apartment complexes in $1B deal
Grant Cardone (Getty)
Grant Cardone crushes lawsuit accusing him of misleading real estate investors
Grant Cardone crushes lawsuit accusing him of misleading real estate investors
Brad Lander is now working to organize a meeting of all tenants to protest Greenbrook. (Getty)
Park Slope tenants fight landlord’s order to vacate
Park Slope tenants fight landlord’s order to vacate
(Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Renters prepare for eviction crisis as aid is held up
Renters prepare for eviction crisis as aid is held up
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...