Sunstone Properties Trust and Two Tree Capital have announced their restructuring into Sunstone Two Tree, LLC (STT). The combined firm will become a vertically integrated real estate operator and developer with a diverse portfolio of rental housing communities in high-growth markets across the country.
“The combination of high home prices, rising interest rates, and changes in lifestyle preferences among the millennials and other generations has created significant demand for rental housing. Sunstone Properties Trust has long been committed to purchasing and improving multifamily communities for working-class individuals and families across the country. Two Tree Capital has built a dynamic team with deep expertise in the complementary and attractive build-to-rent (BTR) space,” says John Maddux, CEO of Sunstone Properties Trust.
“Together, Sunstone Two Tree will be able to accelerate growth as we move into an attractive time to be deploying capital in all aspects of the rental housing business.”
So far, the combined companies have together acquired or developed 5,500 units and will focus on acquiring, renovating, and developing more rental housing communities in high-growth markets. These plans include repositioning distressed or underutilized multifamily properties as well as developing multifamily and purpose-built single-family rental home communities.
The new combined management team of STT has real estate law, private equity, land acquisition, engineering, development, construction, and operations experience. The team includes John Maddux, CEO; Scott Maddux, president; Tanner Maddux, chief investment officer; and Elizabeth Fujino, chief opearting officer.
“Two Tree Capital is pleased to combine its efforts with Sunstone Properties Trust, which has vast experience in the multifamily sector with its principals having participated in $55 billion of transactions,” says Scott Maddux.
“Sunstone brings an experienced team and operates in a complementary sector that expands the breadth of what Two Tree Capital has been doing. The combined efforts of the companies will better position us to address the critical need for rental housing in our country and allow us to continue generating significant value for our investors and the local communities that we serve.”
Additionally, STT named Michael Votta as senior vice president of capital markets. He joins STT with over 15 years’ experience and will manage investor relations to grow the firm’s investor base across various investment opportunities.