Michan: “This portfolio was an exception since is allowed us to expand and diversify in one transaction into multiple markets we had been tracking.”

SAN DIEGO—The Southeast region has seen growth in emerging and new job sectors from domestic and foreign companies relocated or expanding into the region, making it especially appealing for Strata Equity Group Inc., its president David Michan tells GlobeSt.com. As we recently reported, in what was among the year's largest multifamily transactions, the San Diego-based firm purchased the Southeast Residential Portfolio—a grouping of 24 multifamily properties—from an affiliate of New York-based DRA Advisors for more than $720 million. Properties in the SERP portfolio span four states—Georgia, North Carolina, Tennessee, and South Carolina—and consist of 6,294 units in suburban locations throughout 13 metro areas.

We spoke exclusively with Michan about the purchase and why his firm is interested in the Southeast market.

GlobeSt.com: Why does the Southeast multifamily market interest your company?

Michan: The Southeast region has seen growth in emerging and new job sectors from domestic and foreign companies relocating or expanding into the region. This has created a diverse employment market for long-term sustainability and less volatility. There is a variety of first- and second-tier MSAs, and each one has its economic drivers with favorable profile and demographics catering to renters.

GlobeSt.com: What other regions of the country intrigue you for investment?

Michan: As we are headquartered in San Diego, we focus on existing markets in the Western US and along the sunbelt. Our focus is in sub-core and suburban markets.

GlobeSt.com: What is your acquisition strategy going into 2017?

Michan: We plan to continue our 2016 strategy, which is to buy by exception. We are looking for strategic opportunities to help build our portfolio and operating platform.

GlobeSt.com: What else should our readers know about this transaction?

Michan: As mentioned above, this portfolio was an exception since is allowed us to expand and diversify in one transaction into multiple markets we had been tracking. We are strong believers of the demographics and labor centers these properties serve as well as the vintage of the assets.