GVA Management, in partnership with Leste Real Estate US (“Leste Real Estate”), the real estate investment advisor to independent global alternative investment manager Leste Group, today announced the completion of a $380 million portfolio dollars of Class B multi-family residential properties that includes five communities across Texas, Tennessee and South Carolina. The acquisition, which includes 1,670 individual units in total, is one of the largest individual transactions completed by Leste Real Estate to date and its first acquisition completed in 2022.
Like many of Leste Real Estate’s community acquisitions, the purchase will include significant added value for communities, including approximately $17 million allocated for renovations. Additionally, the deal provides strong in-place cash flow and quarterly distributions to equity investors. The acquisition of the portfolio comes after a banner year in 2021 for Leste Real Estate, which totaled more than $500 million in business.
Leste’s recurring partner, GVA, an Austin, Texas-based vertically integrated real estate company committed to creating value in the multifamily sector, will manage the portfolio and oversee value-added improvements. GVA has significant local expertise through its ownership and management of more than 24,000 residential units throughout Texas and the Greater Southeast.
Alan Stalcup, Managing Director of GVA, said: “We are delighted to add these communities to our portfolio and look forward to a fruitful partnership with all of our key stakeholders, especially our new residents. All of these communities are in good markets and high value neighborhoods. We are confident that we can add value and we feel well positioned to execute our value-added plans on behalf of our partners and residents.”
Josh Patinkin, Managing Director of Leste Real Estate, added: “We at Leste have all developed the idea that acquiring strong communities like those in this portfolio is a great way to position capital, especially in an environment inflationary like the one we find ourselves in. .” Patinkin added: “Our multi-family portfolio is doing well and is now more diversified across a great mix of growing markets. We are fortunate to have a great operating partner in GVA and truly appreciate the trust our investors have placed in us as we make this investment together.
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