By Lauren Ratcliffe
lratcliffe@scbiznews.com
Published Jan. 8, 2013

Charleston-based Greystar Real Estate Partners is joining forces with Goldman Sachs to acquire 27 apartment complexes from Equity Residential.

The two companies purchased the properties for $1.5 billion in a joint venture between Greystar and the real estate principal investment area of Goldman Sachs.

The 8,010 units are located in six major markets across the country, and the deal is expected to be completed in two closings to occur in the first quarter of this year.

Greystar and Goldman Sachs have partnered together before, and this transaction continues their relationship, according to a news release.

“This transition fits perfectly in our investment strategy to acquire assets with strong existing cash flows at values below replacement cost located in markets with high employment and population growth,” said Bob Faith, Greystar’s chairman and CEO. “We are pleased that the composition of this portfolio of high-quality apartment communities aligns with locations where we have deep operational expertise.”

The transaction values the properties at approximately $187,000 per unit and a capitalization rate in the mid to high 5% range. The joint venture can exclude up to 8% of the value of the portfolio at its discretion, according to the agreement.

“We believe these assets are positioned to benefit from continued strength in the multifamily industry as well as from Greystar’s operational expertise,” Faith said.

Properties acquired