Greystar sells multifamily portfolio to Ivanhoé Cambridge for $3.6B

Deal involves 10K units across 30 properties mainly in Sun Belt, coastal suburbs

National /
Nov.November 09, 2021 07:13 PM
Greystar sells multifamily portfolio to Ivanhoé Cambridge for $3.6B

Greystar CEO Bob Faith, Ivanhoé Cambridge CEO Nathalie Palladitcheff (Greystar, CDPQ)

Weeks before the pandemic locked down the U.S., Greystar CEO Bob Faith emphasized his bullish stance on multifamily real estate, telling Bloomberg that the sector “offered stability going into a potential downturn.”

This week’s $3.6 billion sale of 30 properties in growth markets including the Sun Belt and coastal suburbs underscores his point.

The South Carolina-based multifamily owner unloaded the nearly 10,000-unit portfolio to Canadian real estate investment firm Ivanhoé Cambridge, PERE reported.

After toying with the idea of a piece-by-piece selloff, Greystar opted for a single buyer, given the heightened demand for multifamily assets, according to PERE. Ivanhoé Cambridge secured the portfolio in August after three rounds of bidding.

The properties comprised Greystar Equity Partners IX, a value-add fund which the firm launched in 2015 and closed the next year with $1.25 billion in equity. Kevin Kaberna, leader of Greystar’s North American investment management platform, did not divulge the total capital deployed for the fund to PERE.

The sale follows Greystar’s launch of its 10th value-add fund, GEP X, early last year.
Greystar had enough liquidity and confidence to maintain investment momentum and secure properties at “significant discounts in 2020 and the first part of 2021,” Kaberna told PERE.

The firm has invested $2.5 billion in the fund, which was fully deployed at over $4 billion, including debt, this summer, Pere said.

The sale to Ivanhoé Cambridge marks the firms’ second deal together this year.

The pair, in conjunction with Bouwinvest Real Estate Investors, picked up an office building in Paris this September with plans to develop 370 co-living units. The agreement is part of the group’s $1.1 billion joint venture to develop and acquire housing for students and young professionals.

Greystar and Ivanhoé also developed The Hudson, a mixed-use development in Pasadena, California, with 173 residential units and 11,000 square feet of ground-floor retail. The firm sold the project to Waterford Property Company, which had partnered with the California Statewide Communities Development Authority in June, for $98 million.





    Related Articles

    arrow_forward_ios
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
    New NYC rent law “beginning to shut down investment”
    New NYC rent law “beginning to shut down investment”
    Numbers were down across the board (Credit: iStock)
    New York’s multifamily market had its slowest first half of the year since 2011
    New York’s multifamily market had its slowest first half of the year since 2011
    645 Madison Avenue (Google Maps)
    645 Madison ground lease trades to Titan Golden for $27M
    645 Madison ground lease trades to Titan Golden for $27M
    Blackstone's Stephen Schwarzman (Getty)
    Blackstone buys logistics portfolio for $2.8B
    Blackstone buys logistics portfolio for $2.8B
    Virtual real estate speculators notch another record deal
    Virtual real estate speculators notch another record deal
    Virtual real estate speculators notch another record deal
     Jeff Sutton of Wharton Properties, 25 West 34th Street in NYC (Google Maps)
    Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
    Jeff Sutton’s Midtown hotel project snags Sonder as first tenant
    Carlyle's Kewsong Lee and Jason Hart with 22-22 Jackson Avenue (Carlyle Group, ODA Architecture)
    For $85M, Carlyle nabs another LIC resi building
    For $85M, Carlyle nabs another LIC resi building
    arrow_forward_ios

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

    Loading...