USAA has sold a controlling interest in USAA Real Estate (“USAARE”) to the current management team of USAARE and a group of investors, including Jim Davidson and Fritz Wolff. Paxion Capital, a private investment group founded by Mr. Davidson and Mr. Wolff, is also a minority investor in the transaction.
Mr. Davidson is one of the founders of technology investment firm Silver Lake and served as managing partner from its inception until 2018. He has been a leader in technology investing for more than 30 years, most recently with a focus on the intersection of technology and real estate. Mr. Wolff has spent his entire career in the real estate industry and today serves as executive chairman of The Wolff Company, a highly successful real estate development and private equity business that will continue to operate independently of USAARE.
Hodes Weill Securities, LLC, acted as exclusive financial advisor to USAA.
The leadership team of USAARE, led by Len O’Donnell, President and CEO, will stay on to run the day-to-day business, which will operate independently of USAA. USAA will retain an ownership interest in USAARE, which expects the transaction to have minimal impact on USAARE’s 250+ member team or its $30 billion portfolio. USAARE will continue to support its diversified platform encompassing investment management, development, acquisition and lending, by focusing on value creation and risk management across its global portfolio of industrial / logistics, multifamily, office, retail, hospitality and infrastructure assets. The sale will enable the real estate business to maximize performance and better serve the requirements of its clients, including USAA and its members.
The transaction is in accordance with USAA’s broader initiative to simplify its operating and regulatory structure, allowing the company to better serve its 13 million members through its core businesses of banking, retirement products and insurance. Formed in 1922, almost a century ago, USAA’s mission is to facilitate the financial security of current U.S. military members, veterans and their families and the company had approximately $220 billion of assets under management as of December 31, 2019.
A full press release regarding the transaction can be viewed here.
This is a landmark transaction and demonstrates Hodes Weill’s expertise in complex strategic transactions, and its position as a trusted advisor to the real estate investment management industry.