Sumitomo Forestry America, Inc. Completes Acquisition of Crescent Communities Key Businesses
Charlotte, NC and Bellevue, WA (July 9, 2018) – Crescent Communities, LLC, a residential and commercial real estate company, and Sumitomo Forestry America, Inc. (“Sumitomo”), a comprehensive housing and wood products corporation and a wholly-owned subsidiary of Sumitomo Forestry Co., Ltd., today announced Sumitomo has completed its acquisition of Crescent Communities with the purchase of its three key businesses, which include multifamily, single family, and commercial and mixed use.
As previously announced, the acquired business will retain the Crescent Communities name and remain headquartered in Charlotte, North Carolina, under the existing management team led by Todd Mansfield, Chief Executive Officer. With the acquisition complete, all of Crescent Communities’ corporate-level debt is being retired, setting the stage for sustainable growth.
“We are pleased to make our partnership with Sumitomo Forestry America official and begin this new chapter in our history with a much stronger capital structure that gives us the flexibility to invest in and expand our proven multi-product platform,” said Mansfield. “Now, with a long-term owner in place, we are poised to continue the innovative community building Crescent is known for and to expand our long-term growth strategy with new initiatives. Together, we have strong resources to draw from, including an extensive network in high-growth U.S. markets and abroad, and a team with a wealth of experience.”
A leading operator and developer of residential and commercial/mixed use communities for more than 55 years, Crescent Communities’ real estate platform focuses on owning and developing assets in high-growth markets across the southeast and southwest.
“Today we warmly welcome Crescent Communities to our team,” said Atsushi Iwasaki, President of Sumitomo Forestry America, Inc. “Having had the benefit of working closely with Crescent over the past 18 months, since we formed our first venture, we are confident in this partnership, Crescent’s integrated real estate platform and the opportunity to deliver on our U.S. growth strategy with investment in the high-growth markets where Crescent is currently active, as well as supplemental markets with similar fundamentals.”
As part of the transaction closing, planning has begun for Crescent Communities’ Fielding Homes single family home building business to reside within Dan Ryan Builders, also part of the Sumitomo Forestry America family of companies. Fielding Homes will benefit from the organization’s broader footprint and deep residential real estate expertise, and Fielding will bring its higher-end brand to Dan Ryan Builders. Dan Ryan Builders is currently the 16th largest private builder and 28th largest residential builder in the nation, operating in six states throughout the mid-Atlantic region, including Pennsylvania, Maryland, West Virginia, Virginia, and North and South Carolina. Crescent Communities will also collaborate with Dan Ryan Builders when Crescent has land positions where homebuilding complements its multifamily rental or commercial use products.
Mansfield added, “Over the years, Crescent Communities has been adept at exploring and creating new initiatives in line with market conditions and opportunities. With renewed financial strength and the power of ideas, we look forward to exploring over time additional dimensions that are complementary to our existing businesses.”
As previously announced, Palmetto Bluff, the acclaimed 20,000-acre resort community with a Montage branded hotel located in Bluffton, South Carolina, will be retained by Crescent Communities’ previous owners.
Moelis & Company served as the exclusive financial advisor to Crescent Communities, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Moore & Van Allen served as Crescent’s legal advisors. Falls River Group, LLC and Zelman Partners served as financial advisors to Sumitomo, and Vinson & Elkins served as Sumitomo’s legal advisor.