The JV between Crown Pacific Properties and AEW Partners IV LP will "invest in multifamily properties in the Western United States in markets that have suffered through some distress in recent years," CPP executive vice president and managing partner Greg Anderson tells GlobeSt.com. "Weak employment growth, strong residential sales markets and large supplies of multifamily housing have impacted some of these markets and we think that there are some that are poised for recovery."
Once multifamily properties are acquired, the JV will probably hold on to them for about three to five years, Anderson says. He notes that the JV's exit strategy will vary on "a deal-by-deal basis," but that the hold times will adhere to the divestment periods required of AEW's opportunity funds.
By acquiring assets in markets poised for recovery, Crown Pacific Properties plans to build the infrastructure that will give the firm the ability "to take advantage of development opportunities when they arise in the future," according to John Ed Easley, CPP's president and CEO.
Crown Pacific Properties, which was established late last year by Easley and Anderson, looked to AEW as a partner because of the firm's reputation and market strategy. "We were seeking a partner to proceed with our investment strategy and obviously, we wanted to find a partner that had a like view of the market," Anderson tells GlobeSt.com. "We were also looking for a large player that we felt was committed to the real estate business out here in the Western United States," he adds, "and we felt that AEW was a good fit."From AEW's perspective, "Crown Pacific meets all of our criteria," according to Thomas H. Nolan Jr., a principal of AEW and head of the AEW Partners Funds. "We like their strategy, their management team and their successful track record, and we look forward to working with them in this venture."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
