Compatriot Capital Acquires Half of Apartment Firm Village Green

December 13, 2011
By Nicholas Ziegler, News Editor

Village Green's Mills Run apartments in Cincinnati.

Compatriot Capital, located in Dallas, has just taken a 50 percent ownership stake in Village Green, an owner and developer of luxury apartment communities. Under the new arrangement, Compatriot plans to invest $50 million of equity to develop $250 million worth of apartments assets in the next two to three years, and will expand Village Green’s third-party management business.

“The current dynamics in the real estate market have afforded a unique opportunity to make direct investments in real estate operating companies,” Paul Rowsey, president & CEO of Compatriot, said. “Village Green’s long history, quality management team, strategic focus, and reputation for customer service and satisfaction were primary motivations for making the investment.”

Growth in multi-family properties is slated to reach significant levels in 2012 and into 2013, according to a recent year-end report by services firm Jones Lang LaSalle. There has been a trend away from home ownership in recent years countrywide – reaching a low of 66 percent in 2010 – and metro vacancy rates for apartment complexes is expected to dip below 5 percent next year. Rents, then, will likely continue their upward march, especially in prime markets.

“The capital strength and strategic support of Compatriot will allow Village Green to expand its management platform at a faster pace and increase the velocity of our development program,” George Quay, president & COO of Village Green, said.

Village Green, founded in 1919 as Joseph Holtzman Homes, owns and operates $4.5 billion in apartment assets across 150 communities in 14 states.

The ownership interests in Village Green acquired by Compatriot had been held by Chicago-based investors Ronald Benach and Wayne Moretti since 1995. Benach and Moretti will continue as partners in a number of Village Green communities.