Major Charlotte developer selling itself to Japanese forestry firm

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Image Credit: Crescent Communities

Charlotte-based residential and commercial real estate developer Crescent Communities has agreed to be acquired by Sumitomo Forestry America, a subsidiary of a Japanese firm Sumitomo Forestry Co.

Under the agreement, Sumitomo will acquire Crescent’s three key businesses. The acquired-business will take the Crescent name and remain headquartered in Charlotte under the existing management team led by CEO Todd Mansfield, Crescent said in a news release.

Sumitomo will acquire Crescent’s multifamily, single family, and commercial and mixed use businesses. The company’s multifamily business, operating under the NOVEL by Crescent Communities brand, includes 20 communities in development and/or operations, totaling approximately 6,400 units. The company’s Fielding Homes single family home building business includes more than 1,700 single family lots across six communities in Charlotte and Raleigh-Durham.

Crescent’s commercial and mixed use business development portfolio includes nearly 1.5 million sq. ft. of assets, including the recently-announced 742,000 sq. ft. Ally Charlotte Center project in Charlotte. In addition, Sumitomo will also buy Crescent’s development pipeline of nearly $2.0 billion of real estate projects, including 5,500 multifamily units, 2,200 single family units, and 2.5 million sq. ft. of office and industrial assets.

Financial terms of the deal were not disclosed.

The acquisition is expected to be closed in the second quarter of 2018, subject to customary closing conditions.

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