Leste Group & GVA Management Complete a $380 Million Acquisition of Five Multifamily Properties in Southeastern U.S.

Leste serving as lead equity investor in significant apartments play

MIAMI--(BUSINESS WIRE)--GVA Management, in partnership with Leste Real Estate U.S. (“Leste Real Estate”), the real estate investment advisor of global independent alternative investment manager Leste Group, today announced the completion of a $380 million portfolio of Class B multifamily residential properties that includes five communities across Texas, Tennessee and South Carolina. The acquisition, which includes 1,670 individual units in total, is one of the largest single transactions completed by Leste Real Estate to date and its first acquisition completed in 2022.

Like many of Leste Real Estate’s community-friendly acquisitions, the buy will include significant value-add for the communities, including approximately $17 million allocated for renovations. Additionally, the deal provides strong in-place cash flow and quarterly distributions to equity investors. The portfolio acquisition comes on the back of a record year in 2021 for Leste Real Estate, which totaled over $500 million in deal activity.

Leste’s repeat partner GVA, an Austin, Tx.-based vertically-integrated real estate company committed to creating value in the multifamily sector, will manage the portfolio and oversee the value-add improvements. GVA has significant local expertise through its ownership and management of over 24,000 residential units throughout Texas and the broader Southeast.

Alan Stalcup, Chief Executive Officer at GVA, said, “We are thrilled to be adding these communities to our portfolio and look forward to a successful partnership with all our key stakeholders, most of all our new residents. All of these communities are in good markets and high-value neighborhoods. We are confident we can add value to and feel well positioned to execute our value-add plans on behalf of our partners and our residents.”

Josh Patinkin, Managing Director at Leste Real Estate added, “All of us at Leste have developed a view that acquiring strong communities like the ones in this portfolio represents a great way to position capital, especially in an inflationary environment like the one we are in.” Patinkin added, “Our multifamily portfolio is performing well and is now more diversified across a great mix of growing markets. We’re fortunate to have a great operating partner in GVA and truly value the trust and confidence our investors have placed with us as we make this investment together.”

About Leste Group

Founded in 2014, Leste Group is a global independent alternative investment manager guided by core values of respect, creativity, and teamwork. Through its US offices in Miami and New York, the firm offers investors a diverse range of strategies across real estate, credit, venture, liquid markets and other alternative asset classes. Leste Group's investment teams leverage institutional-grade processes, a nimble, entrepreneurial approach, capital markets expertise, and exclusive networks to source unique opportunities and drive consistent risk-adjusted returns. To learn more information on Leste Group, please visit leste.com

About GVA

GVA Real Estate Group is an Austin, Tx.-based vertically integrated real estate company committed to creating value in the multi-family real estate sector. GVA specializes in conventional as well as affordable opportunities, paying particular attention to expanding sub-markets. GVA over 24,800 units in Texas, Tennessee, the Carolinas and Colorado. At GVA, our investment strategy is simple, find opportunities that can yield above market cash flow once stabilized while generating capital appreciation in the short and long term. Learn more at gvamgt.com.