Greystar Sells Four Multifamily Properties; Opens Office in Chile

FORT LAUDERDALE—South Carolina-based Greystar Real Estate Partners has sold four multifamily communities in South Florida totaling more than 1,600 units.

The portfolio comprises four rental apartment properties—Bella Vista at Boca Del Mar, Centro at Davie, Stonybrook Apartments and Savannah Lakes—totaling 16.6 million rentable square feet and 1,616 units.

Greystar also reports it has opened a new office in Santiago, Chile to expand its business operations to major markets in Latin America.

In terms of its portfolio sale in South Florida, Greystar, an investment, development and management company, acquired the four properties in 2013 with Goldman Sachs as part of a national 27-property portfolio purchase valued at $1.5 billion. The company completed extensive renovations to units, clubhouses and amenities at each South Florida property.

No financial terms of the transaction or the identity of the buyer were revealed by Greystar.  ARA Newmark represented Greystar in the transaction. Executive managing directors Hampton Beebe and Avery Klann and director Jonathan Senn completed the assignment.

The Carroll Organization and PGIM Real Estate in a separate announcement reports that a joint venture of the two companies acquired the four properties. All the newly acquired South Florida properties will be rebranded under the ARIUM name and managed by the Carroll Management Group.

The acquisition by the Caroll-PGIm joint ventute was led by Jim Mehalso, Atlanta-based managing director and head of Southeast transactions at PGIM Real Estate, and Josh Champion, president and chief investment officer for the Carroll Organization.

The transaction marks the second joint venture between PGIM Real Estate and Carroll Organization. In December, the companies acquired a portfolio of 28 workforce housing properties in Florida, North Carolina, Tennessee and Texas.

“The ‘South Florida Value Portfolio’ is a collection of high-quality, well-located apartment communities in one of the country’s most valuable real estate markets, and we’re very pleased with the outcome of this transaction,” states Kevin Kaberna, executive director and leader of Greystar’s U.S. investment platform.

“This deal is another great example for the effectiveness of our value-add strategy,” he adds. “By leveraging our institutional knowledge and platform we were able to contain expense growth while driving rent growth through renovations to over 1,350 units.”

In terms of property specifics, the Bella Vista at Boca Del Mar is a 392-unit, residential community constructed in 1985 and is located within 10 minutes of  business districts in Boca Raton and Cypress Creek.

Centro at Davie is a 494-unit residential community constructed in 1989 and is within walking distance of a number of college campuses, including Nova Southeastern University, Florida Atlantic University, Broward College and the University of Florida’s Broward County campus. The community is located within 15 minutes of local beaches, as well as business districts in Sunrise, Plantation, Cypress Creek and Fort Lauderdale.

Stonybrook Apartments is a 264-unit residential community, built in 2001 that is positioned between West Palm Beach, Boca Raton, Boynton Beach and Delray Beach. The property offers residents access to the Florida Turnpike and Interstate 95, as well as local beaches. Since 2010, the area has seen 11.4% population growth.

The fourth community traded was Savannah Lakes, a 466-unit residential community constructed in 1991. The property is located west of Interstate 95 and is accessible to business districts in West Palm Beach, Boca Raton, Boynton Beach and Delray Beach.

With the sale, Greystar currently manages more than 37,500 units in Florida, of which Greystar owns 5,500. Globally, Greystar owns more than 110,000 units and manages 400,000.

Speaking of its global presence, in connection with its Santiago, Chile office opening, Greystar reports that managing director Tom Livelli will lead the office and oversee Greystar’s real estate investment and development activities in that country.

Livelli has been active in the multifamily industry in the United States and Latin America since 2006. Prior to joining Greystar last year, he was a senior vice president with Boston Andes Capital, a private equity real estate firm with offices in Boston, Bogotá, and Buenos Aires. He was also a director of Clark Realty Capital, where he was responsible for the financing and development of large-scale mixed-use and residential communities in California and Central America.

“Establishing a permanent footprint in Chile, one of Latin America’s top economies, positions us well to further capitalize on the significant opportunities in the multifamily space across the Andean region,” says Bob Faith, founder and CEO of Greystar. “Since entering the market last year with the launch of our multifamily development fund, we have deepened our institutional knowledge, cultivated important relationships, and identified new investment opportunities that we are actively pursuing.”

Greystar closed Fondo de Inversión Credicorp Capital Renta Residencial I Chile, its first investment fund in Chile, with Credicorp Capital in October 2016. The opening of Greystar’s Santiago office is a key part of the firm’s international expansion strategy and reflects its confidence in the long-term potential of the multifamily market in the country, the company states. In partnership with Credicorp, a leading investment bank in the Andean region, Greystar anticipates raising a second Chile fund this year.