GID Hires Mill Creek Executive To Launch Multifamily Arm
GID is dedicating resources to boost its multifamily developments.
The firm has launched GID Residential Partners, a business platform within the existing company. It will focus on advancing the company's multifamily community developments, the company announced Thursday.
The new residential arm will be led by Sean Caldwell, who most recently worked at Mill Creek Residential as founding partner and executive managing director.
Caldwell also worked as managing director at Trammell Crow Residential. He has overseen the development of more than 15,000 multifamily homes.
GID CEO Greg Bates said the new platform will allow GID to more effectively utilize its resources to meet demand for multifamily housing in the U.S.
"We expect to be a market leader in the production of new housing, leveraging the operational quality and consistency that GID’s residents and investors have come to expect," Bates said in a statement.
GID has 3,500 housing units underway in Atlanta, Houston, Austin and Denver. The company expects the new residential arm will result in approximately $1.25B in development activity.
The multifamily sector is facing uncertain times with slow rent growth and a construction pipeline that will continue to shrink in the short term.
This has some investors seeking an exit. Last month, homebuilder Toll Brothers significantly shrank its multifamily investment, selling its apartment arm to Kennedy Wilson for $347M.
However, GID executives said they see this business environment as a chance to invest in the sector.
"While we expect continued development challenges in certain markets, the US housing market is fundamentally undersupplied, and we see a compelling opportunity," GID Global Development President John Gagnier said in the release.
As of Sept. 30, the company had $31.5B in assets under management across 57,000 housing units and 28M SF in industrial and commercial space.
The firm has developed properties including the 2.2M SF Waterline Square in New York, the 7M SF High Street in Atlanta, and the 520K SF Cirrus and 648K SF Stratus in Seattle.
In May, TriNet signed a 150K SF lease at GID's High Street property.
