Greystar Sells Flagship $3.6B Multifamily Fund to Ivanhoe Cambridge

Greystar Real Estate Partners will shed a 30-property multifamily portfolio for a price tag of $3.6 billion. The buyer is Ivanhoe Cambridge, according to PERE. 

Greystar’s flagship US multifamily value-add fund focuses on acquiring “well-located, institutional quality apartment communities in target markets throughout the US that present significant upside potential through operational efficiency and capital improvements,” the company said in a statement announcing the sale. It has raised $5 billion since its launch and includes institutional investors from North America, Continental Europe, and Asia-Pacific. 

“With a presence in 165 markets in the US and 210 markets globally, Greystar’s vertically integrated platform has a breadth of expertise, and a real view on relative value and relative growth,” said Bob Faith, Founder, Chairman and CEO of Greystar, in prepared remarks. “The disposition demonstrates the value of combining our strong global perspective with our specialized local knowledge to be able to deliver the best outcomes for our capital partners.”

Eastdil Secured advised Greystar in the deal, noting there was  “a broad set of leading institutional investors participating in a multi-round bidding process.”

Greystar is the largest operator of apartments in the United States, with an institutional investment management platform that has approximately $45.1 billion of assets under management.

The pandemic has reinvigorated interest in the multifamily asset class, with both institutional players and private buyers redoubling investment in the sector.

“The biggest factor in terms of the way that it has come back from the pandemic is due to its perceived safety as an asset class,” Mike Procopio, CEO of The Procopio Companies, told GlobeSt.com in an earlier interview. “If you look at real estate in general, the real performers are multifamily, industrial and lab. The rest of the asset classes, in terms of the risk profile, have become unattractive to a lot of core investors. I think you are seeing capital flood into multifamily as one of those safe bets.”