BELAY INVESTMENT GROUP ACQUIRES PORTFOLIO OF WORKFORCE HOUSING ASSETS WITH EAGLE PROPERTY CAPITAL AND FORMS STRATEGIC PARTNERSHIP TO ACQUIRE ADDITIONAL PROPERTIES.
CAPACITY FOR UP TO $269 MILLION OF MULTIFAMILY PROPERTIES IN FLORIDA AND TEXAS
Los Angeles, CA and Miami, FL (February 15, 2017) – Belay Investment Group, LLC (“Belay”) acquired a 49% interest in five multi-family communities assembled by Eagle Property Capital Investments, LLC (“EPC”) and simultaneously, entered into a programmatic joint venture (Belay-EPC PJV) to acquire and reposition up to $269 million of multifamily properties, primarily in select, high density submarkets in Florida and Texas.
Belay-EPC PJV will target Class B & C properties of 150+ units with clear path to value creation, through repositioning strategies including both capital and operational improvements, and optionality around an institutional exit. The niche strategy positions apartment communities to capitalize on the need for quality workforce housing in high growth markets, catering to middle income renters and capturing the significant growth of the middle income segment of the Hispanic population, the fastest growing demographic in the U.S. Hispanic households have a high propensity to rent and are projected to account for more than half of the growth in renter households through 2023.
EPC, headed by co-founders Gerardo Mahuad and Rodrigo Conesa, is the sponsor of EPC Multi-family Partners III (EPC Fund III), which holds a 51% interest in the acquired portfolio and will co-invest alongside the Belay-EPC PJV for future acquisitions.
Vidalta Property Management (“Vidalta”), wholly owned by the EPC and its senior management team, will manage the properties and execute the value-enhancement strategies.
Belay’s investment in Belay-EPC PJV comes from Belay Partnership Ventures II, LP (the “Fund”), which is anchored by a $200 million commitment from a U.S. public pension fund and is targeting $500 million of equity. For over 10 years, the management team has pursued value-added real estate strategies in major U.S. markets through collaborative investment programs designed to ensure unique access to compelling investment opportunities while identifying, and supporting the growth and evolution of, high caliber operating partners.
“We are very excited about our venture with EPC to pursue a strategy that so clearly capitalizes on one of the strongest demographic trends in the U.S., the growth of the Hispanic middle class,” said Barry Chase, Managing Principal of Belay. “EPC’s tremendous success driving value across their portfolio is a testament to Gerardo and Rodrigo’s commitment to their cultural heritage and recognition that when families take pride in their community, they respond accordingly and recruit their friends and extended family as neighbors” added Suzanne West, also a Managing Principal of Belay.
“Our partnership with Belay marks a significant point in the evolution of our firm. It will uniquely position EPC as a leader in our business segment. We will draw on Belay’s industry-leading expertise and best business practices to enhance and strengthen our investment management platform” said Gerardo Mahuad, Managing Principal of EPC. “We are delighted to have partnered with Belay and to benefit from Belay’s superior industry knowledge and business insight. Their collaboration in our venture will prove essential in the execution of our business plan” added Rodrigo Conesa, Managing Principal of EPC.
About Belay Investment Group, LLC
Belay Investment Group is a Los Angeles-based Registered Investment Advisor that pursues compelling real estate investment opportunities on behalf of its institutional investors. Belay is wholly owned and operated by its four Managing Principals, Barry Chase, Suzanne West, Amy Ko, and Eliza Bailey, who average 25 years of buy- and sell-side real estate experience as principal investors and senior management of institutional investment management and advisory firms.
Eagle Property Capital Investments, LLC
Headquartered in Miami, FL, EPC is a vertically integrated real estate investment manager specialized in the renovation and repositioning of residential infill multifamily properties. EPC has established a niche value-add strategy, creating communities that respond to the demand for quality workforce housing including the cultural nuances and unique demands of the Hispanic middle class. Since inception in 2011, EPC affiliates have acquired 18 multi-family properties in Florida and Texas containing over 4,080 units through five investment vehicles with capital raised primarily, through family offices and HNW channels.