Allegiancy and TriStone Realty Management Complete Merger in Multi-Million Dollar Transaction
Allegiancy, a commercial real estate asset management company based in Richmond, Va., acquired Houston’s TriStone Realty Management in a multi-million dollar transaction on June 1.
Although the specific financial details of the investment remain private, the deal reportedly doubles Allegiancy’s portfolio for the second time in 14 months. The company, which was initially capitalized using SEC Regulation A, now plans to use the updated federal exemption in its broader capital-raising strategy. The new Regulation A+ rules substantially increase the amount of money the general public can invest in such companies, from $5 million to $50 million.
Allegiancy CEO Steve Sadler commented, “Making this investment in TriStone and bringing the company on as an affiliate validates an important part of Allegiancy’s growth strategy. In 2014, we doubled our portfolio of assets under management through organic growth. With this transaction, we have grown by 400 percent in just over a year.”
The Houston Business Journal reported that TriStone Realty Management will now be called Allegiancy Houston, and will manage commercial real estate assets in the Texas cities of Houston, Dallas, San Antonio, and Austin.
Prior to the merger, TriStone Realty Management specialized in acquisition, structuring, and asset management services for investors, and managed a portfolio of approximately 3 million square feet in nine states with assets totaling more than $500 million.