Leading global investment firm KKR announced that it acquired a portfolio of 18 multifamily assets from a closed-ended fund sponsored by Quarterra Multifamily, a premier multifamily real estate development and operating company, for about $2.1 billion.
This Class A portfolio features over 5,200 units concentrated mostly in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey. And the portfolio is a mix of mid-rise and high-rise buildings featuring convenient access to urban, metro areas, high-quality construction, modern amenities and excellent energy, water and waste efficiency.
KKR will be working with leading multifamily operators, Carter-Haston, MG Properties and Dalan Real Estate to operate these assets. And KKR is making its investment in this portfolio through capital accounts advised by KKR.
KKR was advised on the transaction by Gibson Dunn & Crutcher. And Quarterra was advised by Troutman Pepper Hamilton Sanders and Jones Lang LaSalle.
KEY QUOTES:
“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. 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.”
– Justin Pattner, Partner at KKR and Head of Real Estate Equity in the Americas
“Quarterra is known for their high-quality assets and we are thrilled to be working with them on this transaction. 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.”
– Daniel Rudin, Managing Director at KKR
