Irving-based JPI, a developer of multifamily communities, is being acquired by Sumitomo Forestry America Inc., a comprehensive housing and wood products subsidiary of Sumitomo Forestry Co. Ltd., the companies announced.
JPI said that minority interests will be acquired by JPI Chief Executive Officer Payton Mayes and Mollie Fadule, JPI chief financial and investment officer. JPI said it will maintain management over all assets currently under construction until their completion and realization.
The acquisition is expected to be finalized in the fourth quarter, and JPI said that partnership details will be disclosed afterward.
“My relationship with Atsushi Iwasaki, the leader of Sumitomo Forestry’s U.S. operations, dates back to 2014. Each interaction we’ve had with the Sumitomo Forestry team in the U.S. and Tokyo has been marked by mutual respect and shared goals,” Mayes said in a statement. “Sumitomo’s consistent partnership and investment in JPI projects since 2019 is a testament to their confidence and faith in our vision. This acquisition amplifies JPI’s influence in the housing sector and charts a definitive path for JPI’s sustained growth.”
No. 8 multifamily developer in the U.S.
JPI said it will keep its name and maintain its headquarters in Irving, supplemented by offices in San Diego and Irvine, California.
Under a leadership team led by Mayes and Fadule, JPI said it will operate autonomously within the Sumitomo Forestry conglomerate.
JPI was recognized by NMHC in 2023 as the No. 1 fastest-growing developer and No. 2 fastest-growing builder in the U.S.
JPI said it has firmly established its prominence in the real estate sector, providing a broad spectrum of multifamily housing choices, spanning affordable, workforce, and market-rate residences.
JPI started construction of 5,051 homes in 2022, placing as the No. 8 multifamily developer on NMHC’s list of largest developers in the U.S.
‘Impactful communities across the income spectrum’
“This collaboration with JPI is a significant milestone in our continued commitment to fostering sustainable communities,” Iwasaki said in a statement. “The shared values and vision between Sumitomo Forestry and JPI cement this partnership’s potential. We’re looking forward to a future filled with innovative, impactful communities across the income spectrum.”
Fadule said that the deal will strengthen JPI’s position.
“Sumitomo’s dedication to JPI is clear, having committed over $200 million in seven JPI communities within the last four years. This transaction will enable JPI to grow and deepen our impact on the housing sector,” Fadule said. “I am thankful to have a trusted partner in Sumitomo Forestry, one that not only understands and respects JPI’s culture and values but also shares our vision and commitment to future growth and impact.”
JPI co-founder Bobby Page said the future is bright for the company.
“It has been an honor and a privilege to steward JPI for the past 34 years. The journey has been rewarding, marked with unrelenting passion and resilience. I have unwavering confidence in the dynamism and vision of Payton and Mollie. With the steadfast support of Sumitomo Forestry, I am certain that the pinnacle of JPI’s success is yet to come,” Page said in a statement.
Sumitomo Forestry branching out into multifamily with JPI
Since 2003, Sumitomo Forestry has largely focused on the single-family home business in the U.S, but in recent years, it has worked to expand its commercial real estate development business, starting with the acquisition of Crescent Communities LLC as a subsidiary in 2018.
Sumitomo’s acquisition of JPI will augment the company’s multifamily construction volume, enhancing its reach and scale.
Last week, JPI broke ground on Jefferson Monrovia which will bring 296 homes to Monrovia, California. It’s a five-story, wrap-style, luxury multifamily development that will offer studio, 1-, and 2-bedroom homes featuring stainless steel appliances, gas ranges, quartz countertops, private patios and balconies, and full-sized in-unit washers and dryers.
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