Real estate investment firms JEM Holdings LLC and Varden Capital Properties are partnering to form Fortis Property Management. In addition, JEM has also purchased a 50 percent interest in property management company Hammond Residential Group.
Fortis Property Management will be responsible for managing more than 50 communities totaling around 13,000 units. The portfolio encompasses nine states, including Texas, Tennessee, Florida, North Carolina, Maryland, Georgia, Alabama, Mississippi and South Carolina. The properties are worth more than $1.5 billion in total asset value. The new Fortis team brings together more than 30 years of property management experience, ranging from new construction and luxury to workforce and affordable housing.
“The decision was strategic as we wanted to vertically integrate the property management side of the business and exert more control over the day-to-day operations at each property,” Mikael J. Levey, founder & CEO of JEM Holdings, told Multi-Housing News. “We are highly focused on expanding our portfolio for years to come and building a strong in-house management and marketing team was a priority for us and our investors.”
The new firm officially opened on Feb. 1 with an office in Atlanta.
Both JEM Holdings and Varden Capital Properties had deals in Atlanta last year. In August, a joint venture between VCP and Tellus Partners sold a 266-unit property in Gainesville, Ga., for $53.2 million. Later in November, JEM purchased a newly-constructed community in Smyrna, Ga., for $68.2 million.