Founded in 2014, Leste Group is a global independent alternative investment platform purpose-built to identify and execute unique investments across a diverse range of strategies including real estate, credit, venture, and liquid markets. Leste Group has a proven track record of success and has over $1.6B in AUM. When engaging in real estate investments Leste often utilizes a value-add renovation strategy and prefers to work closely with nationally recognized, real estate industry leaders who possess state-of-the-art management and operating teams to mitigate risk for investors. Leste Real Estate has extensive experience managing a diverse array of assets from multifamily apartment units to commercial healthcare offices.
Sponsor Overview (GVA Real Estate Group)
Founded in 2010, GVA Real Estate Group is an Austin-based vertically integrated real estate company committed to creating value in the multi-family real estate sector. GVA specializes in conventional as well as affordable opportunities, paying particular attention to expanding sub-markets.
GVA targets functional assets that offer unique design features but have underperformed due to a lack of management oversight or ownership capital constraints.
As of April 2022, GVA owns 24,132 units in 125 assets of various sizes. GVA’s portfolio is mainly based in Texas, South Carolina, North Carolina, and Tennessee.
Through the course of its history, GVA has purchased over 28,000 units worth $3.85 billion, achieving excellent results for investors along the way.
Lifetime Average IRR: 40.9% Lifetime Average EM: 3.51x
Note: Properties acquired in 2011, 2012 and 2013 were acquired by GVA’s principal, before the formation of GVA.
GVA Track Record
Leste Multifamily Track Record
- Presented as gross property level returns, net fund returns were approximately 300-500 basis points lower.
- Presented as net investor level returns.
- Past performance is no guarantee of future results.
Bluffs at Vista Ridge
Bluffs at Vista Ridge is a garden-style community located within the Lewisville suburb of Dallas. The Property encompasses 272 units and features a resort-inspired pool with sundeck and cabanas, fitness center, poolside kitchen, dog park, package room, coffee bar, onsite storage and dog spa.
Residents of the Bluffs at Vista Ridge enjoy backdoor access to International Business Park, Cypress Waters, and Legacy Business Park – three of the premier corporate parks in suburban Dallas-Fort Worth. The corporate offices of Mr. Cooper, Ally, TIAA, Caliber Collision, and UWM sit on the other side of Sam Rayburn Tollway.
Lewisville / Flower Mound
The area benefits from top-notch schools, plentiful retail options, and its location near several major highways. I-35E offers access to employment centers in Las Colinas and the Downtown/Uptown, while the Sam Rayburn Tollway (Highway 121) makes commuting to Plano and Frisco an option as well. Lewisville is also served by two stations on the A-train commuter line, which connects Denton with the end of the DART Green Line in Carrollton. Supply growth has been steady in the past decade, but the submarket has not seen a surge in construction like that in other fast-growth suburbs such as Plano and Frisco. Demand in the area has surged, like other areas across the metroplex, allowing vacancy rates to compress to their lowest rate since 2015. As a result, rent growth is accelerating, after weak growth last year due to widespread economic disruption from the pandemic. Lewisville/Flower Mound has long served as a destination for investment, with many national and institutional investors acquiring value-add assets in the submarket.
Dallas / Fort Worth
A flurry of economic development wins has defined growth in the region over the last decade. North Texas has attracted over 150 new corporate headquarters during this period. In 2017, Toyota moved into its 2 million-SF North American headquarters at the Legacy West development in Plano. The company relocated its sales, engineering, and financial services operations from California, bringing about 4,000 jobs. It has plans to add thousands more. State Farm finished its regional expansion in 2016 and now occupies 2 million SF in Richardson's City Line development. Another major headliner is Liberty Mutual Insurance, which has added around 5,000 jobs in Legacy West. Existing employers like AT&T, 7-Eleven, JPMorgan Chase, USAA, and Fannie Mae are expanding their local footprints, as well.
With rents of about $1,500/month, Lewisville/Flower Mound is affordable compared with other northern suburban submarkets like Frisco and Las Colinas, where average rents exceed $1,600/month. Rents have flattened out over the past few months and trailing 12-month growth in the submarket has trended closer to the metro norm, which is treading water. Rent growth is accelerating in 2022 into double-digit territory, after slowing in 2020 due to economic uncertainty from the recession and heavier competition from recently delivered properties. The Bluffs at Vista Ridge’s current below market rate rents will raise NOI in the short term and Leste predicts that post renovation, the property will rent at slightly above market rate for the area.
Spring Pointe is a garden-style community located within the Richardson suburb of Dallas. The Property encompasses 208 units and features direct access garages, a fitness club with cardio and weight equipment, resort-style pool with sundeck and cabanas, pet spa, dog park, and clubhouse. Residents of the area are acquainted with a built-in amenity base and an excellent quality of life with access to over 30 retail and dining options including a Whole Foods Market.
Spring Pointe is also within walking distance to Cityline Bush Dart Station, providing residents superior accessibility to the Dallas Urban Core, and DFW International Airport. Additionally, the planned Cotton Belt Silver Line will provide east/west access and interface with the Cityline Bush DART Station, providing direct access to Cypress Waters and DFW International Airport. Spring Pointe's strategic location off President Bush Tollway, just east of U.S. 75, allows residents convenient access to all points of the DFW Metroplex including the Dallas Urban Core and Legacy West. The two highways are major transportation arteries in the DFW Metroplex and provide quick connections to adjacent thoroughfares including Dallas North Tollway, Sam Rayburn.
The Plano submarket is outperforming with record setting leasing activity and rent growth. Leasing activity has accelerated at the same time construction has declined, enabling vacancy rates to compress to their lowest level since 2014. With robust leasing activity, the submarket was reporting double-digit growth in 2021, the best performance on record. Meanwhile, investors continue to pursue deals as the multifamily segment has proven resilient. Plano is the epicenter for corporate headquarters in Collin County and has benefited from recent corporate relocations over the past decade. Plenty of land and easy highway access has transformed the area into a bustling suburban-CBD to the north.
J.P. Morgan, Toyota, and Liberty Mutual are some of the largest new entrants, while Frito Lay and Ericsson, JCPenney are existing well-known companies. The eastern side of Plano is home to several technology and telecommunications companies also. The impact of these new jobs cannot be overstated. CityLine and Legacy West are entirely remaking the areas near the North Central Expressway/President George Bush Turnpike and Dallas North Tollway/Sam Rayburn Tollway interchanges, respectively, and demand for housing in those areas is booming. While demand will likely remain strong, there is still plenty of pending supply, both here and in neighboring submarkets like Frisco and Allen/McKinney, which should cause vacancies to stay elevated in the near term. However, groundbreakings in the northern suburbs have slowed in the past year, allowing vacancy rates some breathing room to recover.
Rent growth in Plano is on track to post the best performance on record. As the local economy is recovering and leasing activity picked up, so too is rent growth in Plano. The area was enjoying newfound rent as a result of demand from Toyota, Liberty Mutual, and JPMorgan Chase employees moving to the area. Growth was bolstered by mid-tier, 3-Star properties in the area. However, as new, higher-end properties stabilized, multifamily owners and operators were not shy about pushing rents.
Relative to peer submarkets in Collin County, average asking rents are in mid-range. Rents average near $1,350, above Allen/McKinney and below Frisco/Plano.
Retreat at Stafford
Retreat at Stafford is a garden-style community located within the Sugar Land / Stafford submarket of Houston, TX. The Property encompasses 264 units and features a 24-hour fitness center with cardio and weight equipment, resort-style pool with sundeck and cabanas, picnic areas with grills, private dog park, Luxer One package lockers, clubhouse with billiard table, business center, fire pit lounge, and attached private garages. Residents of Retreat at Stafford can grab a drink, watch the game, or listen to great music at The Pub - Fountains. Other amenities near the Property include the Grid, a mixed-use retail and office destination in Stafford proper with 10 restaurants, and Fountains on the Lake, a shopping center between Stafford and Sugar Land with over 30 retail and dining options.
Retreat at Stafford is strategically located in the Houston metro within the Sugar Land / Stafford submarket (1.5-mi northeast of Sugar Land-proper). The Property is situated directly off the Sam Houston Tollway, which makes a loop around Houston and provides easy access to all the MSA's major employment centers. Stafford serves as an outlying community of Sugar Land, which is the MSA's premier suburb. Sugar Land is Houston's preeminent aspirational suburban destination, and the area is popular with a wide range of age groups while attracting an affluent and well-educated population. Sugar Land boasts an average household income of $154,000, among the highest in the city.
Houston, as one of the fastest-growing cities in the U.S., has seen the recent opening of several large discount stores. Houston is also the largest homebuilding market in the U.S. in terms of new single-family permits, and the U.S. has experienced brisk homebuying activity during the pandemic; home improvement stores have benefited as a result. The Houston metropolitan area is the fifth largest in the U.S. Its young population, affordability, warm climate, low taxes, generally pro-business environment, diversity, and culture continue to attract new residents. Nearly 1.2 million new residents were added from 2010–2020. Only Dallas-Fort Worth and Phoenix topped the Houston metropolitan area in terms of population growth in 2020. Houston has also shifted away from being an economy solely reliant on oil and gas and continues to foster other sectors such as commercial life sciences (Houston is home to the world's largest medical center). The TMC3 project currently under construction is the linchpin in the Texas Medical Center's plan to establish Texas as the "Third Coast" for commercial life sciences and biotechnology research to compete directly with Cambridge, Massachusetts, and Mission Bay in San Francisco. TMC3 is expected to create 26,000 jobs and generate $5.2 billion in economic benefits in Houston. In addition, there are several million SF of new life science-oriented mixed-use projects either under construction or planned along a 2-mile stretch of Holcombe Boulevard in the Texas Medical Center.
Southwest Houston appeals to residents for its affordability and is fortified by an inelastic base of renters-by-necessity. The western and northern portions of the submarket are home to large, young, diverse immigrant populations and some of the highest population densities in the metro, especially in areas such as Gulfton, Sharpstown, and Fondren Southwest. A record demand surge over the past three quarters, spurred by an improving health situation and the continuing economic recovery, has compressed vacancies in the submarket to a five-year low.
Apartment rents in Houston have witnessed a remarkable rebound in 2021. Robust demand and tightening availabilities have supported strong rent growth as the year has progressed and, as of 21Q4, not only have all pandemic effects been erased, but new record highs in both average asking and annual rent growth rates have been reached. Rent growth is now pervasive across nearly all Houston submarkets. From a quality perspective, the strongest asking rent growth over the past 12 months has been in assets rated 4 & 5 Star with effective rents increasing by an impressive 13.7%. Meanwhile, asking rents in Houston's 3 Star segment have increased by 9.0% during that time.
1070 Main is a garden-style community located within the Hendersonville suburb of Nashville. The Property encompasses 364 units and features two resort-style pools, poolside fire pit, 24-hour cardio fitness center, BBQ and picnic areas, two lighted tennis courts, fenced-in dog park, business center, playground, coffee bar, and clothes care center. 1070 Main offers an exceptional lifestyle location with multiple access points to the Cumberland River, park areas and a low cost of living. Surrounded by convenient suburban retail, 1070 Main benefits from numerous grocery-anchored shopping centers and the Target-anchored Rivergate Mall.
Located 15 miles from downtown near the banks of the Cumberland River, 1070 Main offers convenient freeway access via US-31 and 1-65 to Nashville hotspots and beyond. Hendersonville benefits from a high concentration of healthcare employment with Xtend Healthcare and TriStar Medical delivering over 2,000 jobs.
Nashville continues to attract major corporate relocations and expansions, helping boost office-using employment growth in the region. Alliance Bernstein recently relocated from Manhattan to Nashville, adding more than 1,000 office jobs at average salaries ranging between $150,000 and $200,000 per year. Additionally, Amazon is building out its 1 million-SF Center of Excellence project in the Nashville Yards development. The e-commerce giant is in the process of hiring 5,000 employees at the campus, with average annual incomes close to $150,000. In 2021, Oracle confirmed that it will build an 8,500-job megacampus across the river from Downtown that will deliver in phases over the next few years and IT consulting firm Capgemini announced that it was adding more than 500 jobs at the Broadwest development in Midtown. The metro continues to grow its presence as an automotive hub. GM, Nissan, Mitsubishi, and Bridgestone Americas all operate sizable offices here to go along with large manufacturing plants for the former two companies. According to the Nashville Health Care Council, the healthcare industry contributes over $45 billion into the local economy annually and supports 275,000 jobs, directly and indirectly, through its 500 healthcare companies. These companies include large, nationally focused hospital operators such as HCA, support service organizations, accounting firms, national insurers, and healthcare REITs. The sector should continue to play a prominent role in the long-term economic growth of Nashville.
Annual household formation in Nashville typically far outpaces the national average. Nashville contains a handful of major universities, including Vanderbilt University, Belmont University, Tennessee State University, and Middle Tennessee State University. These schools have a collective enrollment of about 50,000 students. Many companies are choosing to locate high value operations in Nashville, thanks to the large base of highly educated graduates from these universities. As a result, many college students are now choosing to stay in Nashville to begin their careers after graduation.
High occupancies and a resilient local economy have created tailwinds for rent growth here. Property managers in Sumner County have been able to raise rents by 17.1% over the past 12 months. This figure is not only outperforming the submarket's historical average by a large margin, but it also marks one of the best rent performances in the Nashville metro during this time.
Plantations at Haywood
Plantations at Haywood is a garden-style community located within the Central Greenville submarket of Greenville, SC. The Property encompasses 562 units and features three resort style pools, two tennis courts, outdoor entertainment kitchen, fitness club with cardio and weight training areas, dog park, walking paths, playground, car wash, multiple clothing care centers, and proximity to restaurant, retail and entertainment.
Residents of Plantation at Haywood can enjoy live music at Smiley's Acoustic Café, a peaceful walk on the Swamp Rabbit Trail, or award-winning brunch from Stax Omega Diner within a few minutes of their doors. The Property is less than one mile from Haywood Plaza, one of Greenville's major retail locations offering 92,000 square feet of retail space.
The Property is centrally located between I-385, I-85, and Highway 276, allowing residents ease of access around the greater Greenville area. The Property is less than a mile from Greenville Downtown Airport and 11 miles from Greenville-Spartanburg International Airport. The Property sits 14 miles from the 84,000-square-foot BMW Manufacturing facility, which provides over 11,000 jobs in fields including IT and research.
The Greenville-Spartanburg region, also known as South Carolina's Upstate, is the state's largest consolidated metro area and its manufacturing hub. More than 14% of the workforce here is employed in manufacturing, with competitive strengths in automotive and advanced textiles, according to an analysis by the Upstate SC Alliance. A growing metro of around 1 million on the I-85 corridor, Greenville and neighboring Spartanburg have benefited from a boom in industrial employment surrounding the automotive industry. As a result, the population here grew by about 13% in the 2010s, adding more than 100,000 people over the decade. Job announcements continued in early 2021 with TTI Floor Care investing $93 million in a new distribution center in Greer, DHL Supply Chain adding 200 new jobs in nearby Cherokee County, and electric vehicle-maker Oshkosh Defense announcing plans for more than 1,000 new jobs in Spartanburg after winning a U.S. Postal Service contract to build the federal agency's next generation of delivery vehicles.
Year-over-year rent growth is outpacing national averages at 14.2%. At $1,180, rents remain lower than the national average. With employment and population growth projected to continue outpacing national averages, multifamily demand is likely to remain strong.