LITTLE ROCK, AR - Summit Housing Partners, LLC of Montgomery, AL and Bailey Properties, LLC of Little Rock, AR announced they have merged to form a new company called BSR Trust. The merger creates a $1 billion multifamily entity.
The combined company includes 18,689 units at 111 communities in ten states in the Southeast U.S. plus Texas and Oklahoma. BSR Trust contains a portfolio of both affordable and market housing. The merger has been approved by both companies' board of directors and remains subject to regulatory approval and project lender consent.
The merger opens up two markets for Summit Housing with relatively lower unemployment rates, Little Rock and Shreveport, where there are opportunities to acquire and/or develop additional market and affordable properties. BSR now has the infrastructure to expand its geography should such opportunities arise.
Daniel Hughes, CEO of Summit Housing Partners in Montgomery, AL will serve as the CEO of BSR Trust. John Bailey, CEO of Bailey Properties, LLC will serve on the company's board of directors and the Finance Committee.
All BSR properties will utilize common vendor purchasing, property and risk management systems as well as utilize common administrative functions like Accounting, IT, HR and Corporate Marketing. We believe that multifamily is a scale business," says Hughes.
"Both Summit and Bailey were profitable operating companies that were not under any financial or operating distress so neither company had to enter into this transaction. We are pleased to announce this merger of two industry leaders to create a stronger company with a focus to provide an exceptional living experience for the residents while building value for our shareholders," said Hughes.
Scott Ray, President of Bailey Properties, will serve as President of the Market Group, which will be based in Little Rock. Blake Brazeal, President of Summit Housing Partners, will serve as the President of the Affordable Group, which will be based in Montgomery.
Together, the companies are expected to be more profitable resulting in added financial strength that surpasses what either could accomplish on their own. "We believe this merger creates an example where the whole of the two companies is greater than the sum of its parts," said Hughes.
BSR Trust, with offices in both Montgomery, AL and Little Rock, AR, is in the business of development, acquisition and management of both market and affordable multifamily communities totaling 111 properties, with 18,689 units in 10 states. BSR Trust has nearly 600 employees in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee, and Texas. The primary mission of BSR is to provide an exceptional living experience for residents at a community they are proud to call home.