An affiliate of Atlanta-based Cortland Partners has entered into an agreement to acquire more than 7,000 multifamily units from Pure Multi-Family REIT in a deal valued at $1.2 billion. The all-cash transaction is expected to close in the fourth quarter of this year.
Scotiabank served as the exclusive financial advisor to Canada-based Pure Multi-Family in the deal, while Lazard acted as financial advisor to Cortland. Atlanta-based King & Spalding acted as legal counsel for Cortland in the transaction. The King & Spalding team included Partners John Wilson, Spencer Johnson and Tony Rothermel, Counsel Conrad Axelrod and Associates John Anderson, Angela Kang, Trey O’Callaghan and Connor Ciepluch.
The 7,085 units are spread across 22 residential properties in Texas and Arizona. Cortland did not disclose the names or addresses of the multifamily communities.
Cortland has been active in southern markets in recent months. Earlier this year, Cortland picked up a 319-unit residential community in the Buckhead area of Atlanta, expanding its multifamily portfolio to more than 11,000 units. This past fall, Cortland snagged three multifamily communities totaling 905 units in Austin from fellow Atlanta-based firm BVT Equity Holdings.
Pure Multi-Family, which owns nearly two dozen multifamily communities in Texas and Arizona, has also had an active presence in the south in recent years. In the fall of 2017, the firm paid $59 million for Alta Fillmore, a 230-unit residential community in Phoenix. The same month, the company expanded its Texas portfolio with the purchase of Farmer Market Apartments, a 340-unit community in Dallas, for $66.4 million. Both communities purchased by Pure Multi-Family had been recently built and featured luxury amenities.