Itochu Acquires 19.5% Stake in U.S. Multifamily Developer Wood Partners
Itochu Corporation has acquired a 19.5% equity stake in Wood Partners, a U.S.-based multifamily developer, and entered into a strategic capital and business alliance. Through this partnership, Itochu aims to build an integrated business platform in the U.S. rental housing sector, spanning building-materials supply to development and operations.
Founded in 1998, Wood Partners operates across 17 offices nationwide and ranks as the third-largest multifamily developer in the United States based on annual starts. The company has developed approximately 92,000 units to date, with cumulative investment reaching about USD 20 billion. With a strong investor base—primarily U.S. institutional investors—Wood Partners expects Itochu to leverage its network of Japanese investors to further expand capital participation in new projects.
The Itochu Group has extensive experience in Japan in for-sale and rental housing development, including the operation of a residential-focused J-REIT, giving it a full value-chain presence in development, management, and operations. In the U.S., Itochu resumed investments in 2014 and has since focused primarily on rental housing. This alliance is positioned as a core pillar of its overseas real estate strategy. Together with Japanese investors, Itochu plans to invest USD 1 billion over the next five years in Wood Partners’ development pipeline. Itochu will also seek to maximize synergies by linking these projects with its North American building-materials business, which operates at roughly 100 locations and generates annual revenue of around USD 2.2 billion.
The U.S. housing market continues to face a chronic supply shortage, with household growth projected to increase by approximately 12.3 million over the next decade. While elevated mortgage rates have made homeownership less affordable, rental demand remains robust, positioning multifamily as an attractive long-term investment segment. This alliance reflects Itochu’s strategy to expand its earnings base in the world’s largest real estate market through both development activities and investment partnerships.
Key Facts
Company Name: Wood Partners
Headquarters: Atlanta, Georgia (U.S.)
Established: 1998
Business: Development, construction, and operation of multifamily rental housing
Operating Locations: 17 offices across the U.S.
Cumulative Units Developed: Approx. 92,000
Cumulative Investment: Approx. USD 20 billion
Notable Position: Ranked No. 3 nationwide for multifamily starts
Partnership Details: Itochu acquires 19.5% ownership stake and enters strategic capital and business alliance