Crown Holdings and Stern Resources form $ 250 million joint venture
Crown Holdings Group to acquire and build workforce housing in the Southeast and Texas with funds from a $ 250 million joint venture with Stern Resources Inc.
Crown Holdings Group, which has invested approximately $ 1 billion in the Southeast over the past 10 years, will expand its multi-family portfolio with the joint venture investment and also deploy additional capital in its subsidiaries and other development projects. .
“The main focus of the JV will be new developments, although this may change if market conditions change,” said Meir Matana, director of Crown Holdings Group. Multi-unit news.
About 30% of the JV funds will be spent in the Atlanta MSA, where the private company plans to build additional housing for the workforce. Another area of interest will be Houston, where the JV has started making its first acquisition, a 276-unit multi-family property.
“The first investments will be in workforce housing in the Houston MSA, in areas where the supply of workforce housing is insufficient,” said Matana. “We believe there are very good benefits to investing in the Houston area and plan to focus resources in this area for now.”
Matana said further acquisitions are expected shortly in the Houston area as well as Melbourne, Florida, and Bradenton, Florida. The joint venture also plans to invest the funds in residential and resort developments in Florida.
When asked if that meant the JV would consider hospitality or condominium developments that could be used as vacation rentals, Matana said the funds could potentially be targeted for both uses “depending entirely on the locations. specific Florida and market conditions ”.
Noting that the multi-family is among the most sought-after real estate investment opportunities in the United States, Crown Holdings Group said in a prepared statement that the joint venture will pose less risk to investors. The company said the multi-family asset class is increasingly in demand among US and international investors “who want to preserve their wealth while achieving a secure return.”
Hartadinata Harianto, Head of Stern Resources Private Capital Group, said in prepared remarks that the joint venture with Crown Holdings Group “fits perfectly with Stern Resources’ strategy of partnering with talented investment firms and teams of management in assets which, once developed, are stable and well positioned. in attractive markets and on the verge of continued growth. “
Since its inception, Crown Holdings Group has acquired 37 multi-family projects totaling 11,800 units; eight mixed-use properties of 7.5 million square feet buildable; 2,000 residential lots and 20 shopping centers with over 2.5 million square feet of leasable area.
In November 2019, a subsidiary of Crown Holdings Group, Marquis Investments, received a $ 25.5 million Fannie Mae DUS loan to refinance Woodgate Apartments, a 257-unit community located in the Atlanta suburb of Chamblee, Georgia. . Marquis Investments acquired the asset in 2017 for $ 20.7 million.