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 in Irving, 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.