MIAMI, FL - Belay Investment Group acquired a 49% interest in five multi-family communities assembled by Eagle Property Capital Investments and simultaneously, entered into a programmatic joint venture (Belay-EPC PJV) to acquire and reposition up to $269 million of multifamily properties, primarily in select, high density submarkets in Florida and Texas.
Belay-EPC PJV will target Class B & C properties of 150+ units with clear path to value creation, through repositioning strategies including both capital and operational improvements, and optionality around an institutional exit. The niche strategy positions apartment communities to capitalize on the need for quality workforce housing in high growth markets, catering to middle income renters and capturing the significant growth of the middle income segment of the Hispanic population, the fastest growing demographic in the U.S. Hispanic households have a high propensity to rent and are projected to account for more than half of the growth in renter households through 2023.
EPC, headed by co-founders Gerardo Mahuad and Rodrigo Conesa, is the sponsor of EPC Multi-family Partners III (EPC Fund III), which holds a 51% interest in the acquired portfolio and will co-invest alongside the Belay-EPC PJV for future acquisitions.
Vidalta Property Management, wholly owned by the EPC and its senior management team, will manage the properties and execute the value-enhancement strategies.
Belay’s investment in Belay-EPC PJV comes from Belay Partnership Ventures II, which is anchored by a $200 million commitment from a U.S. public pension fund and is targeting $500 million of equity. For over 10 years, the management team has pursued value-added real estate strategies in major U.S. markets through collaborative investment programs designed to ensure unique access to compelling investment opportunities while identifying, and supporting the growth and evolution of, high caliber operating partners.
“We are very excited about our venture with EPC to pursue a strategy that so clearly capitalizes on one of the strongest demographic trends in the U.S., the growth of the Hispanic middle class,” said Barry Chase, Managing Principal of Belay. “EPC’s tremendous success driving value across their portfolio is a testament to Gerardo and Rodrigo’s commitment to their cultural heritage and recognition that when families take pride in their community, they respond accordingly and recruit their friends and extended family as neighbors,” added Suzanne West, also a Managing Principal of Belay.
“Our partnership with Belay marks a significant point in the evolution of our firm. It will uniquely position EPC as a leader in our business segment. We will draw on Belay’s industry-leading expertise and best business practices to enhance and strengthen our investment management platform,” said Gerardo Mahuad, Managing Principal of EPC. “We are delighted to have partnered with Belay and to benefit from Belay’s superior industry knowledge and business insight. Their collaboration in our venture will prove essential in the execution of our business plan,” added Rodrigo Conesa, Managing Principal of EPC.