KKR has acquired a portfolio of 18 multifamily assets from a closed-ended fund sponsored by Quarterra Multifamily for $2.1 billion.
The recently-built, Class A portfolio consists of over 5,200 units concentrated primarily in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey. The portfolio, a mix of mid-rise and high-rise buildings, serves high-growth metropolitan areas where new supply will slow down significantly looking out beyond the next couple years, according to Daniel Rudin, Managing Director at KKR.
The acquisition is, much like Blackstone's $10 billion deal to acquire AIR Communities in April, a shot in the arm for the asset class, which has been struggling amid elevated interest rates, slumping sales and declining prices. Multifamily prices were down more than 20% in May from their July 2022 peak, according to MSCI Real Assets.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
