Fitch says Gables started seeking an institutional partner to participate in a portion of its new developments about a year ago. “We were anxious to leverage our significant experience in developing new communities, and with the recovery in the multifamily markets, we wanted to get started sooner rather than later,” he explains, adding that Gables has been negotiating and performing due diligence with USAA over the last six months. “USAA appeared to have a similar vision regarding the timing for new development and a desire to invest in high quality assets. It was obvious USAA was a great match from the very beginning.”

This is the first time Gables has partnered with USAA, Fitch says. “The decision to enter this JV follows extensive joint discussions regarding macro issues such as our mutual goals and aspirations, project management philosophy and processes,” he notes.

The new JV has already closed on the acquisition of three stabilized properties and development is underway on the following: Gables Fairmount, a 333-unit class A apartment project in Dallas; Gables Bering, a mixed-use project in Houston offering 306 apartment homes and 11,200 square feet of retail; and Gables Upper Rock, a 281-unit apartment development Rockville, MD. Fitch says the JV may also kick off a development project in Atlanta.

“This venture represents a unique opportunity to strategically add premier multi-family assets to our portfolio of investments,” says USAA Real Estate Company Chairman and CEO Pat Duncan. “We look forward to building a strong relationship with the Gables team and engaging in future opportunities. We feel Gables is one of the premier apartment developers in the country.”