Compatriot Capital Acquires Percentage of Ownership of Village Green
- Dec 13, 2011
Dallas—Compatriot Capital, a subsidiary of Sammons Enterprises, has acquired 50 percent ownership interest in in Farmington Hills, Mich.’s Village Green, a privately held developer and manager of luxury apartment communities.
Village Green will invest $50 million of equity to develop and acquire almost $250 million in apartment assets over the next two to three years.
“We believe Compatriot is the perfect partner to enhance and expand Village Green’s existing management team to assist in improving our customer service to owners and residents,” Jonathan Holtzman, chairman and CEO of Village Green, said in a statement.
Compatriot’s investment strategy is to build a diversified portfolio of real estate companies with defined product and geographic focus.
“Our investment strategy revolves around investing in established businesses with seasoned, stable management teams that have a history of working together, and a track record of success,” Paul E. Rowsey, president and CEO of Compatriot Capital Inc., tells MHN. “We are very comfortable investing side-by-side with these management teams in a manner in which we align our interests, sharing in the success and growth of the business with an objective of ever increasing enterprise value. We have sought out, and will continue to pursue, companies that have business models that can be sustained through the inevitable cyclical nature of the real estate industry. We have a long-term horizon with no pre-determined exit strategy or timing that we believe will allow us and our management partners create and build scalable businesses.”
However, Rowsey does anticipate a few challenges.
“The real estate business is a competitive business and the companies with whom we align will always be under competitive pressure, especially as it relates to attracting, retaining, and developing quality talent, he says. “We think with the long term nature of our strategy and commitment, our capital support, and our focus on creating value not only at the asset level, but also at the enterprise level, we will be able to meet those challenges.”