Greystar Acquires Majority Interest in Thackeray Partners

The acquisition will give the firm additional rental housing as well as access to investments in the growing industrial sector.
Photo by Scott Graham on Unsplash

Greystar, the largest property management firm in the U.S., will expand its growth opportunities with the acquisition of the remaining 55 percent interest in Thackeray Partners, a private real estate investment firm with expertise in rental housing and industrial asset management.

In September, Greystar acquired 45 percent of Thackeray with an option to purchase the rest of the ownership interest in the firm within two years. Financial terms of both deals were not disclosed.

Founded in 2005 by Tony Dona and Mary Hager, Thackeray has investments in rental housing and industrial assets through five funds. To date, the firm has closed or committed to more than $5.9 billion in transactions representing more than 23,500 rental housing units and nearly 22 million square feet of industrial space.

The Thackeray team will remain in its Dallas office and Dona and Hager will continue to co-chair the Thackeray fund business. They will also sit on the Greystar Executive Committee.

Bob Faith, founder, chairman & CEO of Greystar, said in prepared remarks the Thackeray team is very compatible with Greystar and the company’s vision. Faith said they are always focused on building the core business while identifying strategic growth opportunities.

He noted Greystar was excited to continue building the multifamily platform together with Thackeray while also tapping into the Dallas firm’s deep industrial expertise.

Dona and Hager both referred to a 30-year relationship with Faith and Greystar and said they looked forward to the next chapter of growth as partners. Hager said since the fall they found they can leverage the scale and knowledge of Greystar to enhance the rental housing execution in the Thackeray Fund series.

She added they plan to use this same scale to provide warehouse executive ability for both Greystar and Thackeray historical partners.

Growing Businesses

Thackeray currently has $1.7 billion in assets under management while Greystar manages and operates about $220 billion of real estate in nearly 200 markets globally.

Greystar, founded by Faith in 1993, is the largest operator of apartments in the U.S., managing nearly 729,000 units/beds. It has an institutional management investment platform with about $39.8 billion of assets under management, including more than $18.3 billion of assets under development.

In February, Greystar acquired a portfolio of five student housing projects across the U.K. from KKR for $408 million. The purpose-built student accommodation developments are in London, Glasgow, Coventry and Bristol.