KKR Purchases $2.1B Multifamily Portfolio

Extending from coast to coast, the assets total upward of 5,000 units.

Image of Justin
Justin Pattner, head of real estate equity, Americas, at KKR. Image courtesy of KKR

KKR has acquired a multifamily portfolio from a closed-end fund managed by Quarterra Multifamily for $2.1 billion. The purchase includes 18 Class A properties totaling upwards of 5,200 units.

The communities are primarily situated in high-growth metros across the Sun Belt and in coastal areas. The portfolio includes assets in California, Florida, Texas, Colorado, New Jersey, North Carolina, Washington and Georgia.

The portfolio is comprised of recently completed mid-rise and high-rise communities. The energy-efficient properties have modern amenities and water and waste features.

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The acquisition was made through capital accounts advised by KKR. Carter-Haston, MG Properties and Dalan Real Estate have been selected by KKR to operate the communities.

In a statement, Justin Pattner, KKR’s head of real estate equity in the Americas, cited large-scale investment opportunities emerging after two years of market dislocation.

Gibson Dunn & Crutcher advised KKR on the deal while Troutman Pepper Hamilton Sanders and Jones Lang LaSalle advised Quarterra.

This acquisition comes on the heels of another investment made by KKR. The firm recently purchased a $1.64 billion portfolio from Blackstone Real Estate Income Trust consisting of 19 student housing communities. The properties total more than 10,000 beds. Gibson Dunn & Crutcher also advised KKR on that transaction.

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