2004
Orion Residential is Founded
Our firm began as a joint venture between Orion Residential Partners LLC and Starwood Capital Group, with a modest goal of acquiring $250 million of value-add multifamily apartment communities in select markets throughout the United States. In our first eight months of operation, we acquired 2,268 apartment units in three separate markets—Texas, Virginia, and Washington—for a total purchase price in excess of $250 million, establishing Orion as a prominent multifamily owner and operator.
2005 - 2007
Growth and Expansion
We continued expanding our portfolio in Virginia, while also researching the growth markets of Phoenix, Dallas, and Atlanta. As part of our strategy, we attracted additional capital partners with similar investment objectives, and we formed a joint venture with GE Capital. Over the next two years, we acquired an additional 3,412 units for a combined price of $233.2 million.
In addition to acquiring assets for our own account, Orion provided acquisition advisory service to assist institutional investors to acquire projects based in Las Vegas, Denver, Sacramento and Orange County, California totaling 3,254 units with a combined acquisition price of $372.3 million.
At the end of 2006, Orion reached an agreement with Starwood Capital to acquire Starwood’s interest in the Orion/Starwood joint venture, allowing Orion to operate as an independent fully integrated real estate investment and operating company.
2005 - 2007
Growth and Expansion
We continued expanding our portfolio in Virginia, while also researching the growth markets of Phoenix, Dallas, and Atlanta. As part of our strategy, we attracted additional capital partners with similar investment objectives, and we formed a joint venture with GE Capital. Over the next two years, we acquired an additional 3,412 units for a combined price of $233.2 million.
In addition to acquiring assets for our own account, Orion provided acquisition advisory service to assist institutional investors to acquire projects based in Las Vegas, Denver, Sacramento and Orange County, California totaling 3,254 units with a combined acquisition price of $372.3 million.
At the end of 2006, Orion reached an agreement with Starwood Capital to acquire Starwood’s interest in the Orion/Starwood joint venture, allowing Orion to operate as an independent fully integrated real estate investment and operating company.
2008 - 2011
Persevering Through Market Challenges
Like most real estate companies during The Great Recession, we were faced with several challenges in our portfolio, and we worked with our partners and lenders to restructure several investments. During this time, in joint ventures with high net worth family offices, we focused on the acquisition of a variety of distressed assets that we were ultimately able to re-position and sell at significant profits.
Formation and Development of Orion Residential Management
Recognizing the need to provide exemplary service to our investors and clients, we established our own property management company. In April 2009, we launched Orion Residential Management. By the end of 2010, Orion had transitioned our entire portfolio from third-party management providers to Orion Residential Management and had approximately 5,000 units under management
2012 - PRESENT
Baupost Group and Pivotal Group
We formed a strategic relationship to provide acquisition, property, and construction management services with hedge fund Baupost Group and Pivotal Group to acquire a 23-property, 3,128-unit portfolio in Midland/Odessa, Texas for a price of $170 million. We successfully renovated, repositioned, and sold the portfolio at a significant profit within two years.
Blackstone Real Estate
Orion’s long-term partner GE Capital decided to exit the real estate investment business and agreed to sell its entire multi-family investment portfolio to Blackstone Real Estate. We agreed to retain ownership in the “GE Portfolio” via a new joint venture with Blackstone. In an off-market transaction in 2014, together we acquired an 11-property, 3,499-unit portfolio in Dallas, Houston, Austin, and San Antonio for $460 million. The Orion/Blackstone joint venture reached $1 billion in value.
AllianceBernstein
Partnering with AllianceBernstein, Orion acquired six new properties in two separate transactions, this time in Chicago and Ann Arbor, Michigan. Both value-add portfolios are undergoing significant renovations to improve the buildings’ exteriors and common areas, add new amenities, and enhance many of the individual 2,557 units.
Off-Shore Capital
Expanding our investor base is paramount to the growth of our business. In 2016 we acquired a four-property, 1,492-unit core plus portfolio in the growing North Dallas suburban submarket in joint venture with a large off-shore insurance company. We have continued to focus on off-shore capital and through a joint venture with a Korean Asset Management company, are currently pursuing core and core plus investment opportunities for institutional Korean investors.
2012 - PRESENT
Baupost Group and Pivotal Group
We formed a strategic relationship to provide acquisition, property, and construction management services with hedge fund Baupost Group and Pivotal Group to acquire a 23-property, 3,128-unit portfolio in Midland/Odessa, Texas for a price of $170 million. We successfully renovated, repositioned, and sold the portfolio at a significant profit within two years.
Blackstone Real Estate
Orion’s long-term partner GE Capital decided to exit the real estate investment business and agreed to sell its entire multi-family investment portfolio to Blackstone Real Estate. We agreed to retain ownership in the “GE Portfolio” via a new joint venture with Blackstone. In an off-market transaction in 2014, together we acquired an 11-property, 3,499-unit portfolio in Dallas, Houston, Austin, and San Antonio for $460 million. The Orion/Blackstone joint venture reached $1 billion in value.
AllianceBernstein
Partnering with AllianceBernstein, Orion acquired six new properties in two separate transactions, this time in Chicago and Ann Arbor, Michigan. Both value-add portfolios are undergoing significant renovations to improve the buildings’ exteriors and common areas, add new amenities, and enhance many of the individual 2,557 units.
Off-Shore Capital
Expanding our investor base is paramount to the growth of our business. In 2016 we acquired a four-property, 1,492-unit core plus portfolio in the growing North Dallas suburban submarket in joint venture with a large off-shore insurance company. We have continued to focus on off-shore capital and through a joint venture with a Korean Asset Management company, are currently pursuing core and core plus investment opportunities for institutional Korean investors.
FUTURE
Looking Forward
As we look toward the future, we will continue to focus on our growth through the strategic identification of new major markets and the expansion of our investor base. By staying true to the strategies that have served us well throughout our history, we look forward to furthering our legacy as a firm that generates industry-leading returns for partners and investors.