JAG, New York Life Investment Management Form $100M Acquisition Venture

Formed by Jefferson Apartment Group and New York Life Insurance Co., the investment venture targets the acquisition of 4,000 apartment units and plans to leverage third-party capital partners as it grows.
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Multifamily developer and operator Jefferson Apartment Group has teamed with New York Life Insurance Co.’s indirect, wholly-owned subsidiary New York Life Investment Management LLC to establish a $100 million GP acquisition venture.

The newly-established venture’s goal is the acquisition, ownership and redevelopment of existing apartment communities over the next three years. Workforce housing will be the favored type of property sought. The venture seeks to invest in communities that meet three general criteria: They should be near large, growing employment centers, in geographic areas of lower new supply and within highly-regarded school districts.

Combining a large institution with a creative entrepreneurial firm always takes cooperation,” JAG CEO Jim Butz told Multi-Housing News. “Personal relationships were very important. New York Life brought financial strength and experience, broad market knowledge and credibility. JAG brought construction and property management expertise, broad market coverage and access to a larger acquisition team.”

In November of last year, JAG sold the 178-unit Azul Baldwin Park, a multifamily community in Orlando, Fla., for $43.3 million.

Another investment outlet

The venture will close its first deal this month with the acquisition of a large Boston high-rise for an as yet undisclosed price, Butz said.

New York Life Real Estate Investors is invested in all product types, including office, industrial, retail, hospitality and multifamily. “We are excited to team up with JAG, as their deep experience and full-service platform is the perfect vehicle for our expansion in the multifamily space,” Mark Talgo, senior managing director of New York Life Investment Management, said in prepared remarks. “This venture will create another outlet for New York Life to invest, not only for ourselves but on behalf of our clients as well.