Greystar Real Estate Partners, the nation’s largest rental management firm, has acquired Alliance Residential Company’s property management business. The combined businesses will continue under the Greystar brand.
Headquartered in Charleston, South Carolina, Greystar presently manages 492,967 units, according to the 2020 National Multifamily Housing Council’s 50 Largest Apartment Managers list. Greystar is the nation’s second largest developer (7,010 in 2019), behind Alliance, which developed 8,009 units in 2019.
In total Greystar manages over 660,000 units/beds globally, valued at approximately $35 billion, with nearly $15 billion of assets under development. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business.
Alliance is headquartered in Phoenix, Arizona, and manages more than 500 multifamily properties and nearly 130,000 primarily Class A units across 21 states. Alliance is the largest rental property developer and fourth largest management company in the U.S.
Alliance has focused on the development, construction and acquisition of residential communities, including development of high profile Broadstone communities as well as workforce housing through its Prose brand. Additionally, Alliance develops Marvelle active adult communities and Holden senior housing communities.
The combined portfolio will increase Greystar’s U.S. footprint by approximately 25 percent and complement the firm’s presence in key western markets, such as the San Francisco Bay Area, Los Angeles, Phoenix, Denver and Las Vegas, in addition to the Northeast and Pacific Northwest. Through this transaction, Greystar will grow to nearly 19,000 team members overseeing a portfolio of more than 2,400 communities and 660,000 apartment units across 42 U.S. states and 13 countries.
“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 Bob Faith, founder, chairman and CEO of Greystar. “Even during severe economic downturns, we believe in the resilience of rental housing and we are committed to continuing to grow our company. This acquisition reflects our confidence in that, and is a unique opportunity to acquire a strong business.”
Alliance, the leading developer of multifamily units in the U.S. for the last two years, will streamline its focus on development, construction and acquisition across the multifamily, workforce and senior housing segments. As part of the deal, Greystar will provide management services to Alliance’s multifamily acquisition and development businesses going forward.
“Greystar’s global reach, corporate culture and seasoned leadership team made this milestone a clear next step for Alliance, our residents, investors and associates alike,” said Alliance Residential chairman and CEO Bruce Ward.
“In Alliance, we see an impressive team with a similar operating philosophy, core values, and ‘people-centered’ approach to property management, and this transaction provides us with the ability to capitalize on a number of innovative opportunities in today’s dynamic environment. Greystar will continue to set the standard for operational excellence by leveraging our local market knowledge, economies of scale and innovative, technology-based solutions,” said Andrew Livingstone, executive managing director for Greystar’s Property Management Group.
Financial terms of the transaction were not disclosed.