RICHARDSON, TX – RealPage announced its agreement to buy Lease Rent Options (LRO) and related assets from The Rainmaker Group for $300 million in cash. LRO is a revenue management solution that empowers optimized pricing for over 1.5 million apartments. LRO, coupled with the recent acquisition of Axiometrics, expands RealPage’s suite of solutions for precision data analytics and asset optimization for the rental housing industry.

According to RealPage, the acquisition will better position RealPage to penetrate an emerging global market opportunity to optimize operational and transactional yields for rental housing assets; Expand the company’s real-time lease transaction data, which is expected to improve optimization of new and renewal prices for rental housing leases; Provide additional data science talent and data modeling tools that allow for better harvesting and placement of capital in the rental housing industry.

The industry is ripe for adoption: RealPage estimates that less than 10% of owners and operators of the 45 million rental housing properties in the U.S. currently utilize data-driven pricing science. International markets are believed to possess an even lower rate of adoption for asset optimization software and data analytic solutions.

Adds 500,000 new units opening up cross selling opportunities for other products and services offered by RealPage.

Steve Winn, Chairman and CEO of RealPage stated, “With many apartment markets softening around the U.S., now is the right time to bring together the best data-science talent, a comprehensive lease-transaction database, and RealPage’s powerful suite of pricing, demand and credit optimization tools into one comprehensive platform. Price optimization makes real opportunity to increase asset values and yields from the nearly $3.0 trillion of apartment stock in the U.S. that turns over at approximately $150 billion per year. As revenue management becomes more broadly accepted, we expect our combined platform to drive accelerated, sustained revenue growth in our Asset Optimization product family over the long-term. We believe we have all of the components necessary to offer solutions that bring efficiency and precision to the apartment real estate sector which has historically lacked the solutions available in other investment classes.”

Bryan Hill, CFO and Treasurer of RealPage added, “The acquisition of LRO fits within our capital allocation strategy of generating the highest risk-adjusted returns for our shareholders. We expect the acquisition to be immediately accretive to our adjusted EBITDA margin, contributing to our ongoing objective to expand adjusted EBITDA margin approximately 200 basis points per year. The transaction will be financed through an expanded debt arrangement with our current bank syndicate.”

The completion of the acquisition remains subject to certain standard conditions, and is expected to close during the second quarter of 2017. The acquisition buy price of approximately $300 million in cash is subject to working capital adjustments and post-acquisition indemnification claims. For the year finished December 31, 2016, the LRO business possessed revenue and EBITDA of $35.6 million and $10 million, respectively. Integration work is expected to be completed in 2018 and RealPage expects to achieve incremental revenue and expense synergies that will be accretive to its long term revenue growth objectives and Adjusted EBITDA margin expansion.

Bruce Barfield, CEO and Founder, and Tammy Farley, COO and Founder, are expected to remain with The Rainmaker Group to run the gaming and hospitality division, but have agreed to work closely with RealPage during a transition period immediately after the acquisition is closed.

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KELLER, TX – Olympus Property and Artemis Real Estate Partners are proud to announce the closing acquisition of their 4th multi-family joint venture, the Keller Portfolio. These three Class A properties consist of 679 units in the upscale city of Keller, a Dallas-Fort Worth suburb.

The Stoneleigh Companies originally developed these three properties, which Olympus Property and Artemis bought from Stoneleigh. These three Keller properties have been rebranded as Olympus Town Center, Olympus Stone Glen, and Olympus Waterford effective immediately.

Due to scarcity of land, rising construction costs and increasing restrictions on multifamily development in Keller and surrounding communities, the premier Keller / Southlake submarket offers residents a family friendly community with premier schools, simple airport access, and a central location between both Dallas and Fort Worth.

“As a former Keller resident, I can truly tell you it’s a phenomenal place to live and these three properties are in prime locations in Keller,” said Anthony Wonderly, Principal of Olympus.

The Keller / Southlake submarket features a plethora of nearby job drivers, including the nearby regional economic powerhouse known as Alliance Texas, a master-plotted development spanning 18,000 acres, employs 44,000 people.  Nearby these properties in Westlake are the corporate campuses of Schwab, Deloitte and Fidelity employing an additional 2,500 people.

“Keller is a strong rental market with the Portfolio representing some of the best locations and highest quality assets in the submarket.  The Portfolio is ideally positioned to offer residents seeking top schools, fantastic amenities and proximity to employment centers a variety of options across the three properties,” said Liah Chin, Vice President at Artemis.

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NEW YORK, NY – Jonathan Rose Companies is purchasing Forest City Realty Trust’s Affordable Housing Business, including 48 affordable housing communities in seven states, totaling nearly 8,500 units, Forest City Capital, an MAP designated FHA Lender and Forest City’s affordable housing property management group. The deal is valued at over $500 million. The acquisition will bring Jonathan Rose Companies’ total unit count over 15,000 nationwide and expand its operations to 15 states and the District of Columbia.

The properties, management company and mortgage company will be rebranded with the Rose Communities name. The management company will be renamed Rose Community Management, building on Forest City’s reputation for quality management, adding Rose’s focus on green buildings and communities of opportunity. The properties bought range from the company’s traditional areas of focus from California to Connecticut, while adding new states to the portfolio including Ohio and Michigan.

The finance company will become Rose Community Capital, with the goal of expanding Forest City Capital’s 47-year history of providing FHA loans to clients’ affordable and mixed income residential projects in the Midwest and the Northeast. Rose plans on expanding its geographic footprint and volume.

The transactions are scheduled to close throughout the first and second quarter of 2017. The management company and Forest City Capital are scheduled to be transferred on March 1, 2017. The acquisitions have been approved by Forest City’s board and the closings, which require HUD approvals, will continue through the spring of 2017.

To this major expansion, Jonathan Rose Companies is adding a Cleveland office to its national footprint, where it is retaining Forest City’s property management team consisting of 45 people, as well as their entire field staff for the portfolio of over 200 people.

“Jonathan Rose Companies was selected to buy this portfolio because of its long reputation of preserving, renovating and re-positioning affordable housing, and Forest City Realty Trust’s ongoing relationship with the firm’s principals,” said Michael Daly, Chief Operating Officer of Jonathan Rose Companies, who played a key role in the deal and previously was a Forest City executive.

A majority of the buildings were constructed in the late 70’s and early 80’s as part of the Forest City Dillon Program, and consist of pre-fabricated concrete mid-rise structures that are in brilliant condition.

Jonathan Rose Companies’ goal is to take each of the properties through the Enterprise Green Community Program, which includes capital improvements aimed at achieving measurable reductions of energy and water use and climate impact. Jonathan Rose Companies will also increase social programming at each asset to improve the lives of its residents.

“Jonathan Rose Companies has long been a leader in the greening of affordable housing. We are now pleased to add to this the goal of systemically advancing the social, health and educational outcomes of our residents,” said Jonathan F.P. Rose, president and CEO of Jonathan Rose Companies.

This transaction furthers Jonathan Rose Companies’ commitment to investing, preserving and greening affordable housing for its investment platform nationally. The addition of the management company and finance company expands our ability to meets our goals and mission.

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