CHICAGO, AUSTIN—Chicago-based real estate investment firm Origin Capital Partners and Austin-based developer Aspen Heights Partners have forged a multiyear partnership in which they will co-develop multifamily projects throughout the US.
Founded in 2007, Origin acquires office and multifamily properties and concentrates on eight markets — Charlotte, Raleigh, Atlanta, Houston, Dallas, Austin, Chicago and Denver — making it a good match with Aspen Height's focus on fast-growing cities in the South and Southeast. "Both firms have operations that cover all these cities," Origin's co-founder David Scherer told GlobeSt.com.
Aspen Heights has built more than 25 apartment and condo buildings and currently has eight under construction for a total investment of more than $1 billion. The company recently broke ground in Austin on The Independent, which is expected to be the tallest residential building west of the Mississippi River when completed in 2018.
Origin has more than a half-billion dollars in assets under management and is raising a $150 million fund in 2016.
"From our end, we are really interested in their development expertise," Scherer said, "and they are very excited about our skill in asset management." As a result of the partnership, the companies will have truly vertically-integrated operations. "That is what a lot of capital providers want to see."
Origin already has a Dallas office, which will help the two companies coordinate in that region. And both have offices in the Carolinas, another region of strong interest to both. "We are already looking at quite a few possible deals in the Southeast right now," Scherer said.
"We share a common bond in the way we look at where we'd like to invest money," said Origin vice president Matt Ozee, who runs the TX office and introduced the two firms. "Yet Aspen Heights brings us an element we don't have, fully integrated development and day-to-day construction operations. Similarly, we bring them financial expertise, our asset management platform and capital."
"We are excited to partner with Origin Capital as we grow our multifamily platform nationally," said Greg Henry, Aspen Heights' founder and chief executive officer. "We believe the two organizations have alignment on the investment strategy and target markets."
"Without us having Matt in Texas, without us having boots on the ground, this partnership wouldn't have been formed," said Scherer. "We don't believe in flying in for a few days. We believe in living where we invest."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
