FRG Advises on the Sale of JPI to Sumitomo Forestry America, Inc.

December 5, 2023

Falls River Group (“FRG”) is pleased to announce the acquisition of JPI, a national leader in multifamily real estate development, by Sumitomo Forestry America, Inc., a comprehensive housing and wood products subsidiary of Sumitomo Forestry Co., Ltd. (Tokyo: 1911). FRG acted as a financial advisor to Sumitomo Forestry on this transaction, alongside co-advisor Zelman Partners, a subsidiary of Walker & Dunlop. The specific terms of the transaction were not disclosed.

Headquartered in Irving, Texas, JPI is the #1 fastest-growing developer and #2 fastest-growing builder in the United States, according to the National Multifamily Housing Council (NMHC). The company specializes in Class A, attainable, and affordable multifamily communities, with more than 8,000 apartment homes currently under construction in Texas and California. JPI also maintains regional offices in San Diego and Irvine, California.

The acquisition significantly expands Sumitomo Forestry’s U.S. multifamily presence, making it the 6th largest multifamily company in the country based on annual homes delivered. With a strong foundation in sustainable wood products and over 330 years of corporate history, Sumitomo Forestry delivers more than 10,000 single-family homes annually and continues to grow its U.S. housing footprint.

JPI will retain its brand identity and continue operating independently from its current headquarters and regional offices. The company will also maintain its leadership structure, with Payton Mayes and Mollie Fadule acquiring minority interests and continuing in their roles as CEO and CFO/CIO, respectively.

“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,” said Payton Mayes, CEO of JPI. “This strategic move will tremendously enhance our business plan and drive future growth and sustainability.”

“We are confident that this partnership, in combination with JPI’s rich history, has a bright future,” said Atsushi Iwasaki, leader of Sumitomo Forestry’s U.S. operations. “Their passion for building strong communities aligns with our core values, and we are proud to welcome them into the Sumitomo Forestry family.”

Founded in 1992, Falls River Group is a global Mergers & Acquisition (“M&A”) advisor based in Naples, Florida. FRG’s core capability is sell-side advisory services, generating shareholder wealth for sellers of middle-market companies who seek a proven and confidential process. FRG’s professionals are committed, trusted advisors to their clients and referral partners.