Texas-based apartment developer JPI is set to be acquired by Sumitomo Forestry in a deal valued at up to $215M.

The Japanese housing developer plans to buy 90% of JPI’s shares in November, with the purchase price to be determined through an earnout structure, according to Nikkei Asia.

JPI will keep its name and Irving headquarters and maintain offices in San Diego and Irvine, California, according to a news release. The subsidiary will be led by JPI CEO Payton Mayes and Chief Financial and Investment Officer Mollie Fadule.

“This transaction will enable JPI to grow and deepen our impact on the housing sector,” Fadule said in a statement. “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.”

Absorbing JPI’s business will dramatically expand Sumitomo’s presence in the commercial real estate industry, which it has been building since its acquisition of Crescent Communities in 2018. The company got its start in the single-family home sector in 2003.

Mayes said his relationship with Atsushi Iwasaki, Sumitomo’s head of U.S. operations, dates back to 2014. The company has invested $200M into seven JPI communities since 2019.

“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.”

JPI has made a name for itself by building market-rate, workforce and affordable housing communities across Texas and California. The company is the fastest-growing multifamily developer in the U.S., having begun construction on more than 5,000 units in 2022, according to the National Multifamily Housing Council.

JPI earned $13M in profits on $423M worth of revenue in 2022, per Nikkei. The acquisition is expected to be finalized before the end of the year.