Long-time apartment developer Flaherty & Collins has announced it is establishing an acquisition division, according to an Oct. 14 press release.
Flaherty & Collins CEO Robert Flaherty told Multifamily Dive that acquisitions are a “critical component” of the firm’s 10-year growth plan, after historically focusing on development and management.
“Launching this department allows us to complement that core focus by identifying and investing in existing assets where we can add value and continue advancing our purpose of creating value through vibrant communities,” Flaherty said in emailed comments.
To lead and scale the new venture, the Indianapolis-based firm hired Chris Reckley as vice president of acquisitions. He will work with the executive team to drive portfolio expansion, strengthen Flaherty & Collins’ presence in both existing and emerging geographies and optimize investment returns.
Flaherty said the firm will be open to multiple acquisition opportunities with its new division.
“We see opportunities across the spectrum, from well-performing assets with room for operational improvement to properties trading below replacement cost due to current market dynamics,” Flaherty said. “Our approach isn’t about chasing distress; it’s about identifying communities where our expertise in management, renovation, and placemaking can unlock long-term value for residents and investors alike.”
The addition of acquisitions also gives Flaherty & Collins the ability to move into markets where its development pipeline may not yet reach.
“We’re looking at this as an opportunity to thoughtfully grow our footprint in markets that align with our operational strengths and long-term vision; always with the goal of enhancing communities and delivering lasting value,” Flaherty said.
Portfolio growth ahead
Founded in 1993, Flaherty & Collins has developed more than 17,000 units across 106 properties, totaling more than $2 billion in value, according to its website. It has also managed 60,000 units across 353 properties.
The firm has also had a strong focus on public-private partnerships, developing projects in Cape Coral, Florida; Columbus, Ohio; and Kansas City, Kansas. The firm’s core operations will continue to include property investment, development, construction and asset management.
Reckley, who has more than 10 years of experience in real estate acquisitions and investment, most recently served as director of acquisitions at Dietz Property Group. There, he led acquisition strategies across multifamily and mixed-use properties, managing deal flows, structuring transactions and sourcing capital.
With Reckley aboard, the firm intends to accelerate portfolio growth over the coming years, identifying high-quality assets and leveraging its operational strengths to drive performance.
Reckley has experience in underwriting, due diligence, negotiations and building investor networks.
“Chris brings deep industry experience, proven deal execution skills and strategic insight that will be instrumental as we accelerate growth and broaden our footprint,” Flaherty said. “We are delighted to have him lead this division at such a pivotal time.”
Recent default
Despite its growth, the firm has faced challenges in recent years. Last year, California lender Prime Finance sued MSA North LLC, an entity established by Flaherty & Collins Properties, for nearly $101 million in a foreclosure filing after the apartment developer allegedly defaulted on payments on a 27-story high-rise in its hometown, according to the Indianapolis Business Journal.
Indianapolis property records show a PFP 7 360 Market Square, which has an address tied to Prime Finance, as the current owner of the property.
Flaherty & Collins Marketing Manager Nina Settappa later told Multifamily Dive that rising operating costs and flat or declining revenue had been challenges in downtown Indianapolis. Still, the company was surprised to learn about the filing at 360 Market Square, which represents less than 3% of its national portfolio.
“We have been working collaboratively with the lender to navigate the situation,” she told Multifamily Dive in an email. “This included offering a significant pay down of the outstanding loan, in addition to the millions we have already funded over the last several years to keep the non-recourse loan current.”
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