One of CapitaLand's new holdings in the US.

SINGAPORE–CapitaLand International has acquired a portfolio of 16 multifamily properties in the US for $835 million, or $220,000 per unit–the group's first investment in the US multifamily asset class. The 3,787-unit, Class B portfolio is located in suburban communities around Seattle, Portland, Los Angeles and Denver. CapitaLand sees the acquisition as a value add play and plans to refurbish the portfolio in phases over the next few years.

“The stable, reliable cash flows of these Class B multifamily properties make this suburban portfolio more attractive than the higher-priced urban core segment,” Gerald Yong, CEO of CapitaLand International, said in a prepared statement.

The garden-style and low-rise properties have an average occupancy of 90%, with average length of stay of about two years. Tenants tend to be a diverse mix of middle-income and skilled professionals working at such companies as Boeing, Microsoft, Starbucks, Amazon and Nike, CapitaLand says.

A Possible Spinoff One Day

The acquisition diversifies CapitaLand's global investment portfolio outside of its two core markets of Singapore and China, said Lee Chee Koon, president and group CEO of CapitaLand Group, in a prepared statement. “It also enables us to diversify our investment property portfolio into developed markets as we continue to scale up our presence in our core emerging markets of China and Vietnam.”