Related, Rockpoint Launch $2B Partnership

MIAMI—Locally-based the Related Group has partnered with Rockpoint Group, LLC of Boston to acquire $2 billion in value-add multifamily assets, primarily in the Southeast, over the next two years.

Officials with Related, a major real estate development and management firm, say its new division, together with Rockpoint, will concentrate on value-add multifamily opportunities in Florida and will also evaluate possible investments in markets such as Atlanta, Dallas, Phoenix and other high-growth markets throughout the Sunbelt region.

Michael Hammon, a former Related executive who has more than 30 years of real estate experience, has rejoined the firm and will work closely with the Related Group’s COO Matt Allen. Hammon has joined Related as of June 1 as a senior vice president and is the head of the new multifamily value-add division for Related.

Prior to rejoining Related, Hammon spent more than 15 years as a partner at various companies and partnerships dedicated to acquiring, developing, managing and financing commercial real estate properties throughout the country.  “We’ve been exploring the possibility of expanding into this asset class for some time but were waiting to find the right person to spearhead our efforts,” Allen says.

Hammon tells Globest.com that it is currently vying for several possible acquisitions and is in the best and final round on a property in South Florida and another Atlanta. In addition, the new Related division is also exploring other possible purchases in South Florida, Tampa and Atlanta.

“The (value add) sector is a pretty active market today with institutional players in this field,” he says. “It is fairly competitive, but we feel we have a competitive advantage over most of the other players.” Specifically, he points to the fact that Related has property management, development and construction divisions that can help manage and make necessary improvements to the property the new division acquires. In addition, its extensive development operations can take advantage of any development opportunities that might exist at these value-add properties.

While the division does have an investment target to shoot for, there is no set goal for how many units it would look to acquire in the next two years. However, Hammon says if he had to guess, the division could add anywhere from 12,000 to 18,000 multifamily units to Related’s portfolio.

The value-added division is part of the Related Group’s ongoing national expansion and comes on the heels of a new office opening in Texas, further extending the firm’s multifamily operations to the Southwestern United States, including Phoenix, Dallas and Las Vegas.

On June 21 the Related Group and Allen Morris Co. officially opened the SLS LUX Brickell Hotel & Residences. The 57-story tower includes 450 sold-out residences and 84 guest rooms and suites.  The Related Group also delivered Pariso Bay, the first tower in the 1,341-unit Paraiso District in Miami, last month.