"From Dubai's standpoint, this transaction is a coming-out party for them," Robert Landin, a Milestone partner, tells GlobeSt.com. "They're looking to expand their presence all across the US in various product types." Milestone principals have acquired approximately $4.5 billion of real estate in all major product types in the past seven years. They had a pre-existing relations with DIG and had been searching for an opportunistic acquisition, he adds.

DIG, an affiliate of Dubai Holding LLC, was formerly known as the Investment Office and rebranded to incorporate and promote its tie to Dubai. DIG began investing in the US real estate market in 2003 through its wholly owned subsidiary, Longwing Real Estate Ventures, but this is the first time a transaction has been made public.

Mohammed Al Gergawi, chairman of DIG and CEO of Dubai Holding, says the "properties have significant upside potential and will benefit greatly by the infusion of capital." He notes that the portfolio's central locations in the markets of Dallas/Ft. Worth, Houston, Austin, Jacksonville, Tampa, Phoenix, Nashville and Atlanta were a key selling point.