Leste Group, GVA Management Buy $380M Portfolio

1070 Main Apartments. Image courtesy of Leste Group

GVA Management and Leste Real Estate U.S. have acquired a five-property, Class B multifamily portfolio with a total of 1,670 units across three states for $380 million.

The seller was not disclosed. The properties are located in Texas, South Carolina and Tennessee, including 1070 Main Apartments in Hendersonville, Tenn., a property with one-, two- and three-bedroom floorplans ranging in size from 603 to 1,212 square feet. Community amenities include a business center, fitness center, tennis courts and two swimming pools.

Leste and GVA plan $17 million in value-add improvements at the properties. GVA, a repeat partner with Leste, will manage the portfolio and oversee the renovations. GVA has significant local expertise through its ownership and management of more than 24,000 residential units throughout Texas and the Southeast.

Alan Stalcup, GVA CEO, said in a prepared statement the communities are all in good markets and high-value neighborhoods. He said they are confident they can add value to the properties and execute the improvements on behalf of the partners and residents.

Growing Portfolio

This is one of the single largest transactions completed by Leste Real Estate, the real estate advisor of global independent alternative investment manager Leste Group. The deal was also the first acquisition completed by the firm this year.

The portfolio acquisition follows a record year in 2021 for Leste Real Estate, which completed more than $500 million in total transactions last year. The firm closed two sales for a combined $210 million. The properties were recently developed Class A properties in Tampa Bay, Fla., and Charlotte, N.C., with a total of 623 units. The firm also completed approximately $300 million in multifamily investments, acquiring more than 1,250 units in the second half of the year. The properties, located in Austin, Texas; Lauderhill, Fla.; and Orlando, Fla., all benefited from strong in-place cash flow and upside potential from value-add renovations and rising rents. Leste Real Estate also acquired a 3-acre development site in Miami in 2021 and planned to purchase a 3-acre site in Coral Gables, Fla., early this year.

One of the 2021 acquisitions came in December, when Leste formed a partnership with The Bascom Group and East Hill Capital to purchase Enclave at Lake Ellenor, a 320-unit multifamily community in Orlando for $68.5 million. The 22-acre property is about 7 miles south of downtown Orlando and within 5 miles of Universal Orlando and 15 miles from Disney World.

Josh Patinkin, managing director at Leste Real Estate, said in prepared remarks the firm’s multifamily portfolio is now more diversified and performing well across a wide mix of markets. He also noted that acquiring strong communities like the ones purchased in the GVA partnership, represent a great way to position capital, especially in an inflationary environment.