JAG Shifts Focus to Acquisitions

WASHINGTON, DC-For the most part, since its inception in 2009, the Jefferson Apartment Group has focused on development. It has gotten to the point where it is clocking in about five construction projects a year and has a $250-million pipeline, CEO Jim Butz tells GlobeSt.com. That certainly won’t change—the company, for example, recently began development of Jefferson at Market Place near DC’s Convention Center.

But a shift in focus is underway: in short, the firm has its eye on acquisitions–2,500 units over the next two years to be precise–and its targeted seller will be REITs looking to rebalance their portfolios. In many cases it expects it will be partnering with Starwood Capital for these deals. Not that the company is shunning non-REITs, Butz adds. “What we are looking for are growth opportunities for investors seeking good, long-term yields in the funds. We see buying and renovating class B properties as a way to deliver that.”