The acquisition price was not disclosed. Wood Partners will retain its existing name and management team. CB Richard Ellis Investors CEO Vance Maddocks tells GlobeSt.com that the acquisition was attractive due to the strength in recent months of the multifamily sector.
"Our personal belief is that multifamily will be the best performing sector over the next five years," he says. "Rental rates continue to go up and values have held."
Maddocks adds that CB Richard Ellis Investors will serve strictly as investors in Wood Partners and will not participate in the development of future projects. "Our role is to help in providing access to resources and work with the company on a strategy that will help them grow their platform," he says.
The move is intended to facilitate growth of Wood Partners. Maddocks says he anticipates that the company will be able to grow geographically, but also to possibly be able to enter other areas of the multifamily sector, such as student housing and senior housing.
Wood Partners was founded in 1998 by Leonard Wood, Jerry Durkin and Jim Simpson. Since its inception, it has started more than 39,000 apartment homes representing an investment of $5.2 billion. The company operates 13 offices across the country and has a portfolio of more than 16,700 apartment units located in more than 30 metropolitan areas.
Today, the company has a development pipeline in excess of $3 billion. Among projects the company currently has under development include the Boulevard, a 346-unit condominium project in Tampa, FL; Alta Montecito, a 373-unit condominium project in Las Vegas; and Comal Gardens, a 252-unit apartment project in New Braunsfel, TX.
"This transaction will greatly enhance our capabilities for growth," says Wood Partners CEO Jerry Durkin, in a prepared statement. "We expect to capitalize on CB Richard Ellis Investors' extensive real estate expertise and relationships to continue our national expansion while enhancing our ability to deliver superior returns to our capital partners."
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