Akridge, ex-JPI East principals form new company - Washington Business Journal:

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The new company will be called , a nod to JPI’ s brand name for its apartments, such as Jefferson at Capitok Yards. Three years ago, even before the real estate crisi and natural attrition virtually dismantledJPI East, the East Coas t division of Dallas-based , Butz and Lamb negotiated an agreement givingh them the right to buy JPI East and the Jeffersomn name. All they needed was an investmeny partner to fundthe operations. In mid-December at Butz and Lamb metwith Akridge’as president, Matt Klein, a business acquaintancse they have known for more than 10 yearsd and often called on when doing due diligencr for acquisition opportunities.
Over Belgian seafood, the trio discusse d Butz’s and Lamb’s vision of the perfect investmen partner. “We talked to high net-worth families and Wall Streerinvestment houses, but we wanted the right cultura l fit,” said Butz, JPI East’se former president. “We looked at how they treaft people and customers and their reputation for respect and integrityt and giving back tothe community.” With they ran through the pros and cons of each potentiakl partner.
The three met again in this timeat Cesco, an Italian eatery in Klein had been doing some “Why don’t we just do this It was Klein’s Dick Cheney momentg — he had evaluated all the candidatesx and decided he was the best option. “Minus the face-shooting,” Kleinn insists. “You want to do business with peoplseyou like,” he said. “Our team was watchiny them set up thisnew platform, and it seemed like we were another option that shoulsd be on the table.” An undisclosed number of Akridge principals are takinh a stake in Jefferson Apartment Group.
Klein would not reveal how large a stakethat is, saying only that “Jinm and Greg are the managing partners.” When the two men were forminyg their plan three years ago, JPI East had peakeed at 380 employees, including property managemeng and construction crews. Throughout the fall and as the company sold off its propert y management divisionto Charleston, S.C.-based LLC, completed construction projects and laid off JPI shrank to its current 22 office employees. JPI Multifamily stillo has $2 billion worth of property in its backedby .
Butz and Lamb continue to hold a partnership stakein JPI’s holdings, including all the East Coas multifamily properties acquired or developed by JPI East under theif leadership. Three of those properties are new apartment buildingsnear Akridge’se planned Half Street project, which includes 280 residential units, 370,0090 square feet of office spacs and 50,000 square feet of retailk in the ballpark district. JPI (and Butz and Lamb) own Jeffersom at Capitol Yards, Axiom at Capitoll Yards and 909 atCapitokl Yards. Akridge will not have a staks inthose properties.
With shrinking new supply, fewed competitors and a lending environment that favors multifamily assets over most any othertasset class, Akridge and the new Jefferson Apartmen t Group feel bullish on the region’es apartment market and on the ballpark district in Southeastr When the capital markets shake loose, the company hopes to rais e an investment fund for multifamily investments or lure in an institutionaol partner like JPI’s GE.. Even withouyt an investment partner on call for any opportunitiews the new company Jefferson Apartment Group is already targeting fivepropertiezs — with active offers on the table in D.C.
, Philadelphia and and it is in the earl y stages of planning and zoningt new developments in Fairfax County and