Pine Grove Communities and Gallery Residential Join Forces for Multifamily Asset Investment in the Southeast

Strategic Partnership Announcement

Pine Grove Communities and Gallery Residential have officially announced their strategic partnership aimed at acquiring value-add multifamily assets throughout key markets in the Southeast. This collaboration between two seasoned teams creates a dynamic platform designed to enhance operations and unlock value in residential investment projects.

The partnership has embarked on its first venture by successfully securing capital for future transactions, intending to target a total investment of around $500 million in the near future.

William Stark and Scott Denbow, Co-Founders of Pine Grove Communities, emphasized, "This strategic partnership merges our complementary skill sets and values, with Pine Grove's investment prowess coupled with Gallery's exemplary property management expertise. Together, we are strategically positioned to create thriving communities and ensure operational excellence."

The timing of this alliance aligns with unprecedented challenges in the residential investment landscape. Recent statistics indicate that apartment constructions have plummeted to multi-decade lows, dropping nearly 50% since the peak in 2021. This significant decline is likely to create substantial supply shortages by 2026, with the Southeast poised to take the lead in job growth and population trends, thereby sustaining rental demand.

As the need for attainable housing becomes increasingly pressing, several factors contribute to heightened replacement costs, such as limited land availability, a myriad of entitlement hurdles, labor shortages, and shifts in tariff and immigration regulations. These challenges hinder the development of cost-competitive new supply, but they simultaneously create unique opportunities for acquiring valuable assets at prices below replacement costs.

In particular, Pine Grove and Gallery are directing their focus toward properties situated in affluent submarkets known for their unique physical attributes and strong demographic characteristics. These communities are expected to be enhanced through thoughtful repositioning and a commitment to exceptional hospitality, driving higher value over time. The partnership actively seeks opportunities in burgeoning markets like Atlanta, Nashville, Charlotte, and Raleigh, supported by a robust pipeline of actionable deals.

"At Gallery, we prioritize the art of living in everything we do," said Tracy Bowers, Managing Partner of Gallery Residential. "This partnership allows us to fulfill our mission of fostering connections and enhancing residential experiences through investment in talent, technology, and creative community engagement. Our approach is about elevating everyday life and ensuring residents truly feel at home."

Introduction of Distinct Companies

While Pine Grove and Gallery Residential have maintained a comparatively low profile, both companies are rapidly making their mark in the industry. Over the past four years, Pine Grove has established itself as a formidable player in the build-to-rent space, delivering more than 1,200 homes and lots. In tandem, Gallery has expanded its managed portfolio to approximately 20,000 residences across the Sunbelt within just three years.

The partnership’s inaugural property is Bass Lofts, located in the Little Five Points of Atlanta, which epitomizes their strategy—focused on high-barrier communities that offer lifestyle amenities and significant value-add potential through operational enhancements and property upgrades.

About Pine Grove Communities

Pine Grove is recognized as a leading investor, developer, and operator of purpose-built residential communities. Since its inception in 2021, it has acquired or developed residential assets valued at $350 million. The company is committed to redefining residential living through superior design, planning, and service integrity. To learn more, please visit www.pinegrove.com.

About Gallery Residential

Gallery Residential, founded in 2023, is an Atlanta-based firm dedicated to providing exceptional resident experiences across Class A and B communities. Currently managing 20,000 units in 10 states, the firm blends institutional management expertise with innovative, resident-centric practices. For more information, explore www.galleryresidential.com.