Silverpeak buys stake in multifamily developer

AHS marks the second of two entity-level deals that the New York-based private equity real estate firm has executed this year.

Silverpeak Real Estate Partners has purchased a minority interest in a workforce housing developer, the New York-based private equity real estate firm said Friday.

Silverpeak is investing in AHS Residential, a Miami-based firm that will use the capital to expand nationally. The developer currently has four existing multifamily properties in south Florida, with three projects in development.

Terms of the deal were not disclosed, and the firms could not be reached for comment.

“AHS has built a strong development platform with significant opportunity to scale,” Mark Walsh, a Silverpeak partner, said in a statement. “Our investment is consistent with our firm’s history and focus on partnering with real estate companies to provide growth capital to realize long-term value in their platforms.”

Silverpeak has invested in 150 transactions since its 2010 founding through a variety of strategies, including asset-level and platform-level deals.

AHS marks the second of two entity-level transactions that Silverpeak has executed this year. Earlier this year, the firm reportedly created a partnership with Weaver Street Partners to provide equity backing for the newly-formed multifamily firm, according to local media. Terms of the agreement were not disclosed, and Weaver Street, founded by two former Thor Equities acquisition executives, could not be reached for comment.

In February, Silverpeak teamed up with the Canada Pension Plan Investment Board and TH Real Estate to purchase minority stakes in a Houston office portfolio, PERE reported in February. The groups formed a joint venture with the original owner, Houston-based real estate investment trust Parkway, to own the 11-building Greenway Portfolio. Toronto-based CPPIB acquired a 24.5 percent stake in the $1 billion portfolio for $141 million, while London-based TH Real Estate and Silverpeak partnered for a 24.5 percent stake. Parkway will retain a 51 percent interest and manage the joint venture.

Other joint ventures include a 2011 partnership with Northbrook, Illinois-based Pine Tree Commercial Realty to acquire retail assets across the US, per an announcement at the time.

Silverpeak’s most recent asset-level acquisition was the June purchase of the Marquis on Memorial, a 132-unit garden apartment in Bixby, Oklahoma for $13.5 million, according to data provider Real Capital Analytics. The firm owns a total of 19 assets across 14 markets.

Led by Walsh and Brett Bossung, Silverpeak is the spinout of Lehman Brothers Real Estate Partners, which was founded in 2000 as the private equity real estate business of the now-defunct financial services firm Lehman Brothers. The firm managed $2.5 billion through three opportunistic funds as of June 30, according to Friday’s statement.