Greystar Real Estate Partners, LLC, the parent company of Greystar Investment Management, LLC, is a leading, fully vertically integrated residential real estate company offering expertise in investment management, development and property management of rental housing properties – multifamily, corporate housing, student housing and senior living – globally. Greystar’s vertically integrated business model utilises national platforms and access to local market knowledge to source and execute attractive investment opportunities in the rental housing sector. Additionally, this extensive operating platform allows Greystar to maintain a stable presence in multiple geographies through all phases of economic cycles.
Headquartered in Charleston, South Carolina USA Greystar manages and operates an estimated US$150 billion of real estate in over 185 markets globally including offices throughout the United States, UK, Continental Europe, Latin America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, managing more than 500,000 units/beds. Affiliates of Greystar also host robust investment management platforms dedicated to managing capital on behalf of a global network of institutional investors with approximately US$35.8 billion of assets under management and over US$13.9 billion of assets under development.
Greystar was founded by Robert A. Faith in 1993 with the intent to become a provider of world-class service for rental housing. Mr Faith’s vision for Greystar was to build an enterprise that combined the full-service platform and local market expertise that he developed while at the Trammell Crow Company with the national capital allocation perspective, financial sophistication and investment expertise that had been integral to his success at Starwood. By adhering to its core values – Integrity, Respect, Professionalism, Accountability, Service, and Teamwork – Greystar continues to innovate and create solutions that help it to fulfil its mission.
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Residential: Greystar’s forecast for residential rental housing remains steady and constructive across global markets. Even with growing focus on the multifamily sector from institutional investors in specific geographies like the United States, Germany, and Japan, the long-term multifamily outlook remains positive as many developed markets continue to wrestle with demand-supply housing imbalances. These attractive fundamental tailwinds are further supported by a longstanding global shift towards more service-based economies driving urbanisation and requiring more efficient land use and higher density housing that multifamily offers. Concurrent with these drivers of multifamily demand, global consumers are increasingly preferring the flexibility and benefits such as on-site services and amenities provided by multifamily housing. Together, these secular trends have resulted in growing demand for rental housing globally.
Despite increasing competition from major institutional players in the US, the multifamily sector overall continues to be overwhelmingly fragmented, with less than 25% of the entire professionally managed rental stock managed by the top 50 operators in the country. As the largest vertically integrated multifamily operator, the sector’s fragmentation presents opportunity for Greystar to create value through leveraging its deep local market expertise and the inherent economies of scale from its platform. Greystar expects that multifamily demand will remain solid in the US in coming years. Greystar’s positive outlook is driven by a combination of consistently solid housing formations and sustained population growth, deteriorating single-family housing affordability, and reasonable, albeit growing, overall residential housing supply. The near-term economic outlook remains robust, driven by healthy consumer spending, low unemployment and improving wage growth.
From a demographics perspective, the US now hosts a record-size population of young adults – the age cohort with the highest propensity to rent. Homeownership rates remain near historical lows, driven by existing housing affordability constraints and shifts in consumer attitudes to favouring sharing and renting compared with conventional ownership. Supply of residential housing, both single-family and multifamily, continues to trend below historical averages, creating an imbalance that has resulted in persistent annual rent increases, well surpassing peak prices prior to the global financial crisis. For the foreseeable future Greystar expects that rent growth will continue at a healthy spread above inflation, creating a positive operating and investment environment.
Investment principles & strategy
With over 25 years of experience investing in residential rental housing, Greystar has developed a successful investment approach focused on identifying and executing opportunities that seek to drive value at the property-level. Proven purpose-built rental design and operational excellence lead to a premium over market rents, often above-inflation growth, while offering security of income and a lower volatility outcome. Greystar continually seeks to deploy capital in markets with strong fundamentals while executing the investment strategies it has agreed upon with its capital partners. These strategies benefit from the company’s extensive information networks and relationships, including property management clients, lenders, developers and institutions to identify investment opportunities. Greystar’s vertically integrated, global platform is well-suited to source off-market opportunities and quickly analyse, underwrite and execute on single-asset acquisitions and developments, as well as large portfolios.
Greystar believes that compelling opportunities typically include characteristics that fit within the following profile: (i) assets in attractive locations within high-barrier-to-entry submarkets in a strategy’s target markets that are poised for outperformance due to strong residential fundamentals; (ii) assets that exhibit potential for operational improvements leveraging Greystar’s property management expertise and scale; and (iii) assets that display upside potential through executing Greystar’s historically proven capital renovation programme.
Strategic corporate development
By methodically growing the company over the last 25 years, Greystar has become the largest operator of apartments in the United States and expects to continue delivering industry leading service to the capital partners, clients and residents it serves. Greystar intends to remain a private company, allowing it the maximum flexibility necessary to achieve its business plans and navigate markets to capitalise on attractive opportunities. While the company’s operating platform has achieved scale in the US, the company will seek to grow organically and through strategic acquisitions. Greystar’s investment management and development businesses are expected to grow as investors increasingly allocate capital to specialist operators in an effort to mitigate intermediary fees and take advantage of operators’ deep local market expertise. Greystar will continue to offer opportunities across the risk return spectrum with investment strategies tailored to the needs of its partners and clients.
The information contained in this document is provided as of the date above, unless noted. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer/solicitation can only be made by the applicable offering documents furnished to qualified investors in jurisdictions where permitted by law. Any opinions, forecasts, projections or other statements, other than statements of historical fact, that are made in this document are forward-looking statements. Greystar gives no express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of any information set out in this document, and nothing contained herein shall be relied upon as a promise regarding any future performance.