Bridge Investment Group Closes Gorelick Brothers Capital Transaction
Bridge Investment Group Holdings Inc. (“Bridge”) (NYSE: BRDG) announced that the previously disclosed transaction to acquire certain assets of Charlotte, North Carolina based Gorelick Brothers Capital, LLC (“GBC”), including a portfolio of single-family rental (“SFR”) homes owned by GBC-managed vehicles and a majority of GBC’s asset and property management business, has closed.
In connection with the transactions, Bridge acquired 60% of GBC’s business, valued at $50 million. Bridge has funded the acquisition with approximately 50% cash and 50% units of Bridge Investment Group Holdings LLC. The GBC team has joined Bridge to launch an SFR strategy on the Bridge platform, under a newly formed SFR investment manager that is managed by Bridge and the key principals of GBC. Additionally, Bridge and GBC principals have completed a $660 million recapitalization through Bridge-sponsored investment fund vehicles of the SFR portfolio comprising more than 2,700 homes in 14 markets, concentrated in the Sunbelt and certain Midwest markets of the United States.
“We are excited to have completed this transaction with the team at Gorelick Brothers Capital and look forward to what we can achieve as a combined team in the single-family rental market,” said Robert Morse, Executive Chairman of Bridge. “The single-family rental sector will continue to be a rapidly growing factor in the overall residential rental market, and we expect the addition of the former GBC team to make Bridge a formidable player.”
“Bridge’s hands-on, vertically integrated investing and operating model is a seamless fit for our business, and it has already allowed us to gain significant traction with our SFR strategy. We look forward to building a great enterprise together,” explained Todd Gorelick, Co-Chief Executive Officer of the new SFR investment manager, and Christopher Skardon, Co-Chief Executive Officer and Chief Investment Officer of the new SFR investment manager.
RBC Capital Markets LLC acted as financial advisor to Bridge and Latham & Watkins LLP acted as Bridge’s legal counsel. Goldman Sachs & Co. LLC acted as financial advisor to GBC and Kirkland & Ellis LLP acted as GBC’s legal counsel.
ABOUT BRIDGE INVESTMENT GROUP
Bridge is a leading, vertically integrated real estate investment manager, diversified across specialized asset classes, with approximately $31.8 billion of assets under management as of September 30, 2021. Bridge combines its nationwide operating platform with dedicated teams of investment professionals focused on select U.S. real estate verticals: residential rental, office, development, logistics net lease, logistics properties, and real estate-backed credit.
