Greystar Real Estate Partners, the nation’s top apartment manager, has expanded its portfolio with the acquisition of Alliance Residential’s property management business.
Charleston, S.C.-based Greystar, which ranks No. 1 on the 2020 NMHC Top 50 Managers list with 492,967 units, is adding nearly 130,000 primarily Class A units in more than 500 properties in 21 states. Alliance, headquartered in Phoenix, has also been at the top of the NMHC Top 50 Managers list, coming in at No. 4 this year.
The combined portfolio will increase Greystar’s footprint by approximately 25% and complement its presence in key Western markets, such as Denver, Las Vegas, Los Angeles, Phoenix, and the San Francisco Bay Area, as well as the Northeast and Pacific Northwest. It also boosts the firm’s team to nearly 19,000 employees overseeing more than 660,000 units in more than 2,400 apartment communities across 42 states and 13 countries.
The combined businesses will continue to deliver services to clients, partners, and residents under the Greystar brand. According to The Wall Street Journal, Greystar paid nearly $200 million in the all-cash deal, and the firm continued to move forward with the previously agreed-upon price because it is confident the multifamily business will remain strong in the long term despite the impact that COVID-19 has had.
“We only consider acquisitions of companies that are culturally compatible and fit our long-term strategic objectives. In Alliance, we’ve found both. Alliance is held in the highest regard in our industry, operates in some of the best markets across the country, and has some of the most talented people in rental housing,” said Greystar founder, chairman, and CEO Bob Faith in a statement. “Even during severe economic downturns, we believe in the resilience of rental housing, and we are committed to continuing to grow our company. The acquisition reflects our confidence in that and is a unique opportunity to acquire a strong business.”
Alliance, which also ranks No. 1 on the NMHC 50 Top Developers list and No. 2 on the NMHC 50 Top Builders list, will continue to focus on development, construction, and acquisition across the multifamily, workforce, and senior housing segments. In addition, Greystar will provide management services for Alliance’s acquisition and development businesses going forward as part of the deal.
“We are thrilled to launch this long-term strategic relationship with Greystar, combining best-in-class residential managers, complementary portfolios, and unrivaled expertise to create the leading property management company in the multifamily industry,” said Alliance Residential chairman and CEO Bruce Ward. “Greystar’s global reach, corporate culture, and seasoned leadership team made the milestone a clear next step for Alliance, our residents, investors, and associates alike.”
