USAA, USAA Real Estate Close Transaction for New Ownership Structure

April 03, 2020

SAN ANTONIO – USAA successfully closed today on a transaction announced last November to sell a controlling interest in USAA Real Estate (USAARE) to the company’s management and a group of investors with deep industry expertise, a commitment to USAA’s values and the potential to help drive the real estate company to an even higher level of performance.

Along with Len O’Donnell, who will continue to lead the day-to-day business as president and chief executive officer of USAARE, James A. Davidson and Fritz H. Wolff will become key principals under the new structure. Paxion Capital, founded and managed by Davidson and 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. 

“We could not be more enthusiastic that Mr. Davidson and Mr. Wolff are introducing long-term, generational capital to our partnership, as we embark on this exciting new chapter and challenge ourselves to realize our full potential as an independent, world-class investment manager,” said USAA Real Estate President and CEO Len O’Donnell. “Their business acumen, personal integrity and industry relationships will make them invaluable contributors to our work to fulfill our mission of serving the financial needs of our investor clients. While I am pleased to share the news of the company’s restructure, given the state of crisis across the globe, our current focus remains balanced between the health and safety of our employees, tenants and partners and the important work of preserving value for our investors.”

USAA will remain as an investor, and USAARE will continue to manage USAA’s real estate portfolio.

“In its four decades, USAA Real Estate has been an innovator, an industry thought leader, and a savvy investor, serving USAA and many prominent institutional investor clients” USAA President and CEO Wayne Peacock says. “The move enables us to focus on our core businesses, banking, P&C and life insurance, while still benefitting from USAA Real Estate’s impact managing our real estate investments. At the same time, it enables them to deliver great returns for each of their investors, including our membership.”

About USAA

The USAA family of companies provides insurance, banking, investments, retirement products and advice to 13 million current and former members of the U.S. military and their families. Known for its legendary commitment to its members, USAA is consistently recognized for outstanding service, employee well-being and financial strength. USAA membership is open to all who are serving our nation in the U.S. military or have received a discharge type of Honorable – and their eligible family members. Founded in 1922, USAA is headquartered in San Antonio. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.