NEW YORK CITY-Rreef Real Estate Opportunity Fund II and Bainbridge Capital have joined forces to complete acquisitions of multifamily properties. The JV has just completed its first deal taking a six-property, multifamily portfolio in the Mid-Atlantic.

The acquisition gives the team more than 2,100 rental units. The pipeline holds the purchase of two more properties totaling 400 units, which are currently under contract. The price for the completed acquisition was not disclosed.

While the exact locations of the properties were not disclosed, Benjamin Young, managing director of Rreef, tells GlobeSt.com, "The portfolio consists of high quality assets with very good locations in their respective submarkets. The partners believe that with a targeted capital expenditure plan, the portfolio has the potential to post strong rental growth."

The portfolio seller was not released but the JV focuses on large portfolio dispositions by governments and corporations, hospitality and resort/leisure acquisitions. It will also look for redevelopment opportunities and residential and retail development. Which category this acquisition falls into remains uncertain.

The portfolio will receive $15 million in upgrades which will include the replacement of the roof and HVAC units and well as landscape and common area improvements. Young says come properties will also receive new flooring and fixtures as needed.

Going forward, according to Young, the JV does not have targeted acquisition amount, "but the partners are actively evaluating new opportunities and are optimistic that we will expand the joint venture in 2007."

They will continue to focus along the East Coast. Young says that part of the country is poised for growth in the upcoming years. "The JV will tend to focus on areas where Bainbridge has existing regional platforms, which today is in the Mid-Atlantic states and in Florida," Young says. "But the JV will not rule out expanding its footprint for the right opportunity in a high barrier-to-entry market."