Daiwa House Group, a leading construction and real estate development company in Japan, makes Scottsdale-based Alliance Residential its first and exclusive US residential rental platform investment

SCOTTSDALE, Ariz. – (Nov. 4, 2024) – Alliance Residential Company, one of the largest multifamily developers in the nation (“Alliance Residential”), is pleased to announce a minority investment in the company by Texas-based Daiwa House USA Holdings Inc., a U.S. subsidiary of Daiwa House Industry Co. Ltd. (“Daiwa House”).

Daiwa House is a global real estate investment, development, construction and management company, based in Japan and traded publicly on the Tokyo Stock Exchange with over $40b in total assets. Previous US real estate investments include three for-sale homebuilders: Stanley Martin in the East, Trumark Companies in the West, and CastleRock Communities in the South. With this transaction, Alliance Residential becomes their first and exclusive platform investment in the U.S. rental segment.

“We are honored that Daiwa House chose Alliance Residential for their U.S. residential rental real estate platform. We believe this meaningfully adds to our balance sheet capability, provides Alliance Residential additional reach into global capital markets and creates a solid foundation for our long-term success,” said Alliance Residential’s Chairman and CEO Jay Hiemenz. “Preserving our entrepreneurial culture and retaining the competitive advantages that have made us so successful, including local execution and alignment, were key considerations in our discussions, and of paramount importance to both Alliance Residential and Daiwa House. This investment not only allows us to continue this proven strategy, but to also become more evergreen through new growth capital.”

No significant changes to Alliance Residential’s business model or operations are anticipated. The company will continue to finance opportunities with its long-time trusted lending and investment partners. Alliance Residential’s senior management team will remain unchanged except Bruce Ward, who will transition to Chairman Emeritus. The Alliance Residential Board will include current Alliance Residential executives including Chairman and CEO Jay Hiemenz, COO-West Nick Chapman, COO-East Brian Austin and CFO Bob Weston, together with representation from Daiwa House.

“Having spent significant time in Japan and the U.S with Daiwa House’s executive team and their U.S. partners, I have been impressed by their core competencies in constructing residential real estate,” said Hiemenz. “The company was founded 70 years ago building quality housing with an efficient and replicable model, which evolved into an impressive use of building technology and supply chain management which is very much aligned with Alliance’s approach and methods. Equally like-minded is their mission statement with an intent to enhance social good by improving customers’ lives and the communities in which they operate. We are very excited about our future together.”

Dentons US LLP served as legal counsel and Jefferies and SMBC Nikko served as financial advisors to Alliance Residential.

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About Alliance Residential Company
Alliance Residential was founded in 2000 and has grown to be one of the largest and most active rental residential real estate developers in the United States. Headquartered in Scottsdale, Arizona with 19 regional offices, Alliance Residential is focused on the development, construction and acquisition of residential communities across 16 States and 39 metropolitan markets. Alliance Residential develops high-end Broadstone multifamily communities, Prose attainable communities, Holden senior housing and Silveray build-to-rent communities.

About Daiwa House Group
Daiwa House Group was founded in 1955 with the corporate mission of contributing to the “industrialization of construction.” Today Daiwa House Group has become one of the largest providers of residential housing in Japan and operates in 25 countries, offering a wide range of real estate services including single-family houses, rental housing, condominiums, commercial facilities, logistic facilities, and others. The company has approximately 50,000 employees globally and total assets in excess of $40b. Daiwa House USA Holdings Inc. has bases in Dallas, TX, Los Angeles, CA, Reston, VA, New York City and other U.S. locations, focusing primarily on the residential for-sale and rental markets.

Media Contact:
Marcia Scott, Clearwater Communications
marcia@azclearwater.com
602-451-4550