GVA Management, in partnership with Leste Real Estate U.S. (“Leste Real Estate”), the real estate investment advisor of global independent alternative investment manager Leste Group, today announced the completion of a $380 million portfolio of Class B multifamily 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 single transactions completed by Leste Real Estate to date and its first acquisition completed in 2022.
Like many of Leste Real Estate’s community-friendly acquisitions, the buy will include significant value- add for the communities, including approximately $17 million allocated for renovations. Additionally, the deal provides strong in-place cash flow and quarterly distributions to equity investors. The portfolio acquisition comes on the back of a record year in 2021 for Leste Real Estate, which totaled over $500 million in deal activity .
Leste’s repeat partner GVA, an Austin, Tx.-based vertically-integrated real estate company committed to creating value in the multifamily sector, will manage the portfolio and oversee the value-add improvements. GVA has significant local expertise through its ownership and management of over 24,000 residential units throughout Texas and the broader Southeast.
Alan Stalcup, Chief Executive Officer at GVA, said, “We are thrilled to be adding these communities to our portfolio and look forward to a successful partnership with all our key stakeholders, most of all our new residents. All of these communities are in good markets and high-value neighborhoods. We are confident we can add value to and feel well positioned to execute our value-add plans on behalf of our partners and our residents”.
Josh Patinkin, Managing Director at Leste Real Estate added, “All of us at Leste have developed a view that acquiring strong communities like the ones in this portfolio represents a great way to position capital, especially in an inflationary environment like the one we are in.” Patinkin added, “Our multifamily portfolio is performing well and is now more diversified across a great mix of growing markets. We’re fortunate to have a great operating partner in GVA and truly value the trust and confidence our investors have placed with us as we make this investment together.
