Dive Brief:
- On Wednesday, Greystar announced a strategic partnership with Denver-based apartment owner Grand Peaks, which will add nearly 11,000 apartment homes across seven states to the Charleston, South Carolina-based company’s property management platform.
- By bringing in Greystar to manage its properties, Grand Peaks will be able to focus on its core strengths in development, investment and asset management while delivering enhanced value to residents and joint venture partners, according to the news release.
- Greystar, already the U.S.’s largest owner and operator of apartments, adds to its more than 1 million units and beds globally with the deal. The partnership will strengthen its presence in high-growth markets, including Miami, Denver, Dallas–Fort Worth, Phoenix, Seattle, Portland, Oregon and Charlotte, North Carolina.
Dive Insight:
Brothers Luke and Nick Simpson founded Grand Peaks in 2003 and, over time, built a portfolio with geographic diversity. By partnering with Greystar, the firm can add operational scale and market reach.
In the news release announcing the deal, Luke Simpson, co-CEO of Denver-based Grand Peaks, said partnering with Greystar positions the firm’s portfolio and residents to benefit from industry-leading practices. “Greystar’s reputation for excellence and innovation makes them the ideal partner to ensure our communities continue to thrive,” he said.
Richard Friedman, senior managing director of client services and strategic partnerships at Greystar, said Grand Peaks’ portfolio, industry reputation and culture make them a natural fit for his organization.
“At Greystar, we seek partnerships with organizations that share our commitment to delivering exceptional resident experiences and operational excellence,” he said in the news release.
Grand Peaks’ portfolio isn’t the only one that Greystar has absorbed over the last half decade.
In February 2024, Atlanta-based Wood Partners transferred property management operations to Greystar. In 2020, the firm acquired the management operations of Scottsdale, Arizona-based developer Alliance Residential.
As it becomes increasingly necessary for apartment owners to invest in technology for both resident-facing and back-office features, it can be challenging to compete in property management without a certain level of scale.
“I have economies of scale, which allows me to be more effective,” Greystar Executive Director of real estate Mike Clow told Multifamily Dive in 2024. “To invest in the technology, to invest in the people and to invest in marketing is becoming harder to do in this part of the business.”
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