US: Investment firm KKR has acquired a portfolio of 18 multifamily assets from a closed-ended fund sponsored by Quarterra Multifamily, for approximately $2.1 billion.
The recently-built portfolio consists of more than 5,200 units concentrated primarily in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey.
The portfolio is a mix of mid-rise and high-rise buildings featuring convenient access to urban, metropolitan areas, high-quality construction, modern amenities and excellent energy, water and waste efficiency.
“We are pleased to acquire this exceptional, well-located multifamily portfolio from one of the world’s premier developers and owners of residential real estate,” said Justin Pattner, partner at KKR and head of real estate equity in the Americas. “We believe this is a great moment to invest in real estate, as transaction activity starts to pick up on the heels of two-years of dislocation in commercial real estate markets. Across our platform we are finding opportunities where our scale, strong relationships, multiple pools of capital and local knowledge give us advantages as a buyer of large pools of high-quality, irreplaceable assets.”
“Quarterra is known for their high-quality assets and we are thrilled to be working with them on this transaction,” said Daniel Rudin, managing director at KKR. “We like the fundamentals in this sector. This portfolio serves high-growth metropolitan areas across the country, where new supply will slow down significantly looking out beyond the next couple years. We are excited to invest in this portfolio.”
KKR will work with multifamily operators, Carter-Haston, MG Properties and Dalan Real Estate to operate the assets. KKR is making its investment in this portfolio through capital accounts advised by KKR.
KKR was advised on the transaction by Gibson Dunn & Crutcher LLP. Quarterra was advised by Troutman Pepper Hamilton Sanders LLP and Jones Lang LaSalle.
