Dive Brief
- Sumitomo Forestry America, the US home and wood products subsidiary of Japanese giant Sumitomo Forestry, has acquired the operating platform of apartment developer JPI. The acquisition is expected to close in the fourth quarter of 2023.
- Sumitomo Forestry has committed more than $200 million in seven JPI communities since 2019. JPI will maintain its name and headquarters in Irving, Texas, complemented by offices in San Diego and Irvine, California. The developer will manage all of its assets currently under construction until they are completed.
- Current JPI CEO Payton Mayes and CFO Mollie Fadule have acquired minority interests in the company and will operate it independently within forestry conglomerate Sumitomo. Before coming to JPI, the pair worked together at Merrill Lynch in 2006 and co-founded Southlake, Texas-based private equity firm Cephas Partners in 2012.
Diving knowledge:
The acquisition of JPI is just another step in the expansion of Sumitomo Forestry’s growing residential portfolio in the United States. the company bought Charlotte-based Crescent Communities multi-family, single-family, commercial and mixed-use businesses in 2018.
“This collaboration with JPI is an important milestone in our continued commitment to fostering sustainable communities,” said Atsushi Iwasaki, leader of Sumitomo Forestry’s US operations, in the press release announcing the agreement.
Sumitomo Forestry has also bought a number of US homebuilders, including:
- Dallas-based Gehan Homes
- Bloomfield Homes based in Southlake, Texas
- Brightland Homes based in Addison, Texas
- MainVue Homes based in Kirkland, Washington
- DRB Group based in Rockville, Maryland
- Edge Homes based in Draper, Utah
With the purchase of JPI, Sumitomo Forestry becomes the fastest growing developer and the second fastest growing builder in the US, according to the National Multifamily Housing Council. Last April, the company focused on affordable, workforce and market-rate housing, ranked as the No. 8 developer in the market. annual list of the association. It was the eleventh largest builder.
In the press release announcing the deal, Mayes said his relationship with Iwasaki dates back to 2014.
“Sumitomo’s consistent partnership and investment in JPI projects since 2019 is a testament to their trust and faith in our vision,” Mayes said in the statement. “This acquisition expands JPI’s influence in the housing sector and charts a definitive path for JPI’s sustained growth.”
With the sale, co-founder Bobby Page will step back. “It has been an honor and a privilege to administer JPI for the past 34 years,” he said in the statement. “The journey has been rewarding, marked by relentless passion and endurance.”
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