JPI Acquisition Completed by Sumitomo Forestry America, Inc.

United States-leading multifamily developer finalizes partnership with Sumitomo Forestry, a company celebrating a 330-year legacy

IRVING, Texas, Dec. 5, 2023 /PRNewswire/ -- JPI, a leader in the development of Class A and attainable multifamily communities, and Sumitomo Forestry America, Inc. ("Sumitomo Forestry"), a comprehensive housing and wood products subsidiary of Sumitomo Forestry Co., Ltd., announced today the successfully completed acquisition of JPI's operating platform by Sumitomo Forestry.

As the #1 fastest-growing developer and #2 fastest-growing builder in the United States, as recognized by NMHC, JPI has established itself as a trusted leader in the multifamily development sector. The firm continues to lead the way with 8,000+ homes under construction in Texas and California, with a robust pipeline of projects under development.

"This partnership marks a pivotal moment for JPI and I'm very excited for two primary reasons," commented Payton Mayes, Chief Executive Officer for JPI. "This partnership not only establishes a resilient structure that supports JPI's long-term vision and legacy but also involves a significant infusion in JPI's working capital. This strategic move will tremendously enhance our business plan and drive future growth and sustainability."

"As a long-term partner, Sumitomo Forestry has made tremendous investments in JPI projects over the past four years," said Mollie Fadule, Chief Financial and Investment Officer for JPI. "Their deep respect for our company culture and team has been evident throughout our collaboration. With this acquisition, we're embarking on an exciting new journey, one that promises remarkable growth and new opportunities for JPI."

The acquisition strategically positions Sumitomo Forestry to expand its multifamily portfolio, making it the 6th largest multifamily company in the United States, based on the annual volume of homes delivered.

"Today, we officially welcome JPI to our team," shared Atsushi Iwasaki, the leader of Sumitomo Forestry's U.S. operations. "As I've worked with JPI and their leadership, I have become very familiar with their passion for making an impact on communities, which is a value we share at Sumitomo Forestry. We are confident that this partnership, in combination with JPI's rich history, has a bright future."

JPI will retain its brand identity and continue operating from its North Texas headquarters, supported by regional offices in San Diego and Irvine, California. The agreement includes minority interests acquired by Payton Mayes and Mollie Fadule, who will maintain key leadership positions as CEO and CFO/CIO respectively.

Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc. and Norton Rose Fulbright US, LLP advised JPI on the transaction, and Perkins Coie LLP served as legal advisor to Mayes and Fadule. Falls River Group and Zelman Partners, a subsidiary of Walker & Dunlop, served as financial advisors to Sumitomo Forestry, and Vinson & Elkins served as Sumitomo Forestry's legal advisor.

About JPI
JPI is a national developer, builder, and investment manager of Class A, attainable and affordable multifamily assets across the U.S., with over 8,000 apartment homes under construction. Recognized by NMHC as the 8th largest and fastest growing developer in the U.S., JPI is headquartered in Irving, Texas, and has two offices in Southern California. With a 34-year history of successful developments throughout major U.S. markets and an unparalleled depth of industry-specific experience, JPI stands among the most active privately held real estate companies in the country. JPI's leadership team has comprehensive experience in multifamily developments – ranging from low-density garden apartments and mid- to high-density wrap and podium projects to senior-living communities and mixed-use high-rise developments. The firm offers investment management, predevelopment, underwriting, marketing, and asset management services as well as construction, financial, and administrative services. To learn more about JPI, please visit JPI.com.

About Sumitomo Forestry Co., Ltd
Sumitomo Forestry has its roots in forest ownership and management. Founded over 330 years ago, the company focuses on the wood-product businesses, emphasizing sustainability, fairness, and societal values. Each year, Sumitomo Forestry delivers over 10,000 single-family houses (Ranking 9th in the U.S. based on number of homes closed), and with the acquisition of JPI, will deliver over 8,000 multifamily homes (Ranking 6th in the U.S.) For more information, visit http://sfc.jp/english/.

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SOURCE JPI