USAA and Gables Enter Into $400M JV Agreement

USAA and Gables Enter Into $400M JV Agreement SAN ANTONIO, TX - On January 12th, an affiliate of USAA Real Estate Company executed a Joint Venture Agreement with Gables Residential to develop Class-A multi-family properties at select urban infill sites as well as purchase an interest in several of Gables' best-in-class stabilized properties. The development and acquisitions amount to over $400 million of Class-A multi-family assets.

USAA and Gables Residential closed on the acquisition of the first of three stabilized properties in the venture and development is underway on the following: Gables Fairmount, to comprise 333 Class-A multi-family apartment homes in Dallas; Gables Bering, consisting of 306 multi-family apartment homes and 11,200 square feet of retail in Houston; and Gables Upper Rock, to feature 281 apartment homes in Rockville, Maryland. Gables will provide development, construction and property management services to the venture.

"This venture represents a unique opportunity to strategically add premier multi-family assets to our portfolio of investments," says USAA Real Estate Company Chairman and CEO Pat Duncan. "We look forward to building a strong relationship with the Gables team and engaging in future opportunities. We feel Gables is one of the premier apartment developers in the country."

David Fitch, President and CEO of Gables Residential noted, "The multi-family markets are experiencing a strong recovery and fundamentals continue to improve. Gables is thrilled to be joining in partnership with one of the most substantial and experienced real estate investors in USAA to continue to produce well located, high quality communities in our core markets."

With a mission of Taking Care of the Way People Live, Gables Residential has received national recognition for excellence in the management, development, acquisition and construction of luxury multi-family communities in high job growth markets. Gables Residential owns, develops and manages multi-family communities and mixed-use developments in Atlanta, Austin, Dallas, Houston, Memphis, South Florida, Southern California, and metropolitan Washington, D.C. Additionally, it has third-party management operations in the Chicago, New York, Boston, Phoenix, Central and North Florida, and Washington State markets. Gables Residential enjoys a healthy portfolio with approximately 38,000 apartment homes under management, including a corporate-owned portfolio of 63 stabilized communities comprising approximately 16,000 apartment homes. An additional 2 communities are under development/lease-up, comprising approximately 400 apartment homes. Gables has the ability to develop another 4,000 apartment homes through its shadow pipeline of owned undeveloped land. Gables Residential is a privately held REIT. For more information please visit www.gables.com.

USAA Real Estate Company, with approximately $6 billion assets under management, provides co-investment, acquisition, build-to-suit and capital for development. The USAA portfolio consists of multi-family, office, industrial, retail and hotel properties as well as investments in real estate operating companies with annual volume transactions exceeding $3 billion. USAA Real Estate is a subsidiary of USAA, a leading financial services company, serving military families since 1922.
Source: USAA Real Estate Company

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