Compatriot Capital, a real estate operating and investment subsidiary of Sammons Enterprises, is investing an undisclosed amount in JLB Partners, a developer and builder of Class A multi-family assets in select U.S. markets, the company said. Compatriot will be a minority shareholder in JLB Partners. There will be no change in JLB Partners management. Terms of the transaction were not disclosed.
DALLAS, Aug 01, 2012 (BUSINESS WIRE) — Compatriot Capital, the real estate operating and investment subsidiary of Sammons Enterprises, today announced that it is making a significant capital investment in JLB Partners, a national developer and builder of Class A multi-family assets in select U.S. markets. The investment will make Compatriot a leading minority shareholder in JLB.
There will be no change in JLB Partners management. Terms of the transaction were not disclosed.
“We see JLB as a leader and an innovator in the luxury multi-family housing market and among the very best in their markets in terms of quality developments,” said Paul E. Rowsey, president and CEO of Compatriot Capital, Inc. “Compatriot saw a unique opportunity to make an investment in a company that has a history of success, a superior industry reputation, and is well aligned with our overall investment strategy. JLB’s strength in management team, deep relationships with the institutional investment community and strategic market footprint all were key factors in making this investment.”
This is Compatriot’s second investment since announcing its plans in June 2011 to build a $1 billion real estate business over the next decade by focusing on entity-level investments in real estate operating companies. In Dec. 2011, Compatriot announced its first investment when it acquired 50 percent ownership interest in Farmington Hills, Mich.-based Village Green.
“Teaming up with Compatriot Capital was an easy decision, given the company’s financial stability and great management team,” said James L. Bosler, chairman of JLB Partners.
JLB Partners was formed in Dallas in 2007 by key principals from Fairfield Residential, including Fairfield’s founder, Jim Bosler. JLB’s principals have over a 15-year history of successful development and a depth of industry-specific experience. The company currently has nearly $1 billion in projects under development, with approximately 5,100 units under construction, and another $1.1 billion in its pipeline with an additional 6,000 units slated for future development.
“Compatriot’s investment greatly augments our balance sheet and will enable JLB to expand our business model,” said Bay W. Miltenberger, chief executive officer of JLB Partners. “We will now look to hold certain properties long term, thus expanding our operations and strengthening our capital base. This partnership, along with our long-standing institutional investment relationships, will give JLB a solid footprint going forward.”
As part of the transaction, Rowsey, along with Heather Kreager, chairman of Compatriot, and Mark Van Kirk, senior vice president of Compatriot, will join JLB’s board of directors. Van Kirk noted, “Working with the JLB team during the course of this transaction was seamless and we look forward to working collaboratively with them for the long-term.”
Compatriot Capital is following an investment strategy of building a diversified portfolio of investments in real estate companies with defined product and geographic focus.
In June 2011, Rowsey was named president and chief executive officer, and Mark D. Van Kirk was named senior vice president of Compatriot.
In 2008, Compatriot and E2M Partners, a Dallas-based private equity firm investing in national real estate assets, jointly acquired 50 percent of KDC Holdings, one of America’s leading commercial real estate and investment companies. The interest in KDC continues to be a growth-oriented, core holding for Compatriot. Compatriot also holds an ownership interest in E2M and is the lead investor in E2M-managed funds.
JLB Partners, LLC, is a national developer, builder and manager of Class A multi-family assets in select markets of the United States. With a history of successful developments and a depth of industry specific experience, the principals of JLB have worked together for over 15 years and continue to create properties with well thought out designs in core markets. With projects in Dallas, Austin, Houston, Charlotte, Atlanta, Washington, D.C., and Phoenix, JLB has experience in a broad array of real estate developments including low-density garden and medium to high-density mid-rise and high-rise product intended for conventional rental, student housing, and mixed use developments. JLB is headquartered in Dallas and has offices in Atlanta, Phoenix, Washington, D.C., and Miami. http://www.jlbpartners.com .
About Compatriot Capital
Headquartered in Dallas, Compatriot Capital directs the real estate investment strategy for its parent company, Sammons Enterprises, Inc. with a focus on entity-level investments in real estate operating companies.
About Sammons Enterprises, Inc.
Founded in 1938, Sammons Enterprises, Inc. is a multi-faceted, global holding corporation with a diversified portfolio of investments, including wholly-owned businesses and investor partnerships in industries such as insurance, financial services, industrial equipment, energy, and real estate, among others. Headquartered in Dallas, Texas, with assets approaching $55 billion, Sammons ranks among the largest privately owned companies in the world.