Western National, Banner Oak Capital Launch Multifamily JV

The new partners plan to invest in multifamily projects throughout California’s major markets through acquisition and ground-up development projects.
Mike Hayde, CEO, Western National Group. Image courtesy of Western National Group

Western National Group and Banner Oak Capital Partners LP are teaming up as partners and launching a strategic joint venture to invest in multifamily properties throughout California’s major markets.

The investment capital will provide general partner capital as well as select limited partner capital, for both the acquisition of existing properties and for ground-up development projects. The joint venture may also seek the investment of third-party limited partner capital on a project-by-project basis, according to Michael Hayde, CEO of Western National Group, a multifamily acquisition, development, construction and property management firm.

Banner Oak is a real estate investment management firm focused on providing growth and investment capital to best-in-class operating partners. The Banner Oak team has invested in and managed a diverse portfolio of real estate operating companies and assets representing billions of dollars across the United States. The firm’s investments cover all the major product types including industrial, multifamily, senior housing, retail, hotel and office and have included debt and equity capital structures.

“Banner Oak has an excellent track record of successful multifamily real estate transactions and has a reputation of high integrity,” Hayde said in a prepared statement. “We are confident that this partnership is with the right people and has all the necessary elements for future success in the market.”

“The Western National team has impressed us with their commitment to excellence, collaborative culture and disciplined approach. We look forward to making meaningful investments across California with a best-in-class developer and operator,” Gibson said in a prepared statement.

In business for 60 years, Western National is one of California’s largest multifamily owners and developers. The firm has acquired or developed more than 50,000 apartment units and has a portfolio under management of more than 24,000 apartment units.

Western National Deals

Some of the firm’s most recent transactions have been dispositions. In February, Western’s investment fund, Western National Realty Fund II LP, sold The Landing at Long Beach, a 206-unit multifamily community in Long Beach, Calif., to Friendly Franchisees Corp., for $72 million.

In December, Western National sold Seacrest Apartment Homes, a 368-unit multifamily property in San Clemente, Calif., for $137.7 million, according to Yardi Matrix data. Western National had owned the apartment community since 2011, when it acquired the asset for $95.4 million.

One of Western National’s recent ground-up projects is The Platform, a 551-unit multifamily community constructed in partnership with Anchor Real Estate Capital and Fantasia Holding Corp. in the 120-acre Market Park San Jose master-planned community in San Jose, Calif. The Platform broke ground in December 2017 and is scheduled for completion later this year.