Black Creek Diversified Property Fund, Black Creek Group’s investment platform, is expanding its multifamily portfolio by purchasing a 333-unit property in Rockville, Md., and a 268-unit building in Winter Park, Fla., for $178 million.
“When sourcing multifamily investments for Black Creek Group, we typically target secondary cities and favor newer builds with easy access to public transportation,” Raj Dhanda, Black Creek Group’s CEO, told Multi-Housing News. “The properties we acquired in Maryland and Florida demonstrate this strategy, and these properties exhibit a host of positive fundamentals, including low vacancy rates.”
The 333-unit Rockville property, named The Daley at Shady Grove Metro, is located at 8010 Gramercy Blvd. and comprises one- and two-bedroom apartments with an average monthly rent of $2,053, according to Yardi Matrix data. The building was 95 percent leased when sold, according to the seller.
Black Creek’s other purchase, a 268-unit property in Florida named Broadstone Winter Park, was 85 percent leased at closing. Located at 1305 Morgan Stanley Ave., Broadstone is a mix of one-, two- and three-bedroom apartments with an average monthly rent of $2,117, according to Yardi Matrix data.
“We believe the multifamily sector offers attractive investment opportunities for multiple reasons—vacancy is low, rental growth rates are healthy and supply and demand remain in check,” Dhanda said. “As the multifamily sector continues to exhibit strong demand, our focus on these property types in these areas will likely remain a priority as part of our overarching strategy.”