Sun Shines on Fairfield’s $1.1B Portfolio Acquisition
The buyer is expanding its holdings in six states.
Fairfield Residential has closed on a $1.1 billion purchase of a 15-property, 3,380-unit portfolio of multifamily communities. Sunroad Enterprises sold the assets in a deal arranged by JLL. The portfolio includes communities in some of the top markets across the U.S., including Arizona, the Carolinas, Nevada, Colorado and Georgia.
JLL also arranged $415 million in Freddie Mac financing for 10 of the assets, and an additional $250 million is being provided by KKR. The company will be servicing the former fiduciary commitment. With this financial backing and Fairfield’s 45,500-unit nationwide portfolio, the deal allowed Sunroad to use an alternative exit strategy, providing additional liquidity for the portfolio.
Most of the communities acquired by Fairfield are garden-style developments, with 35 percent being mid-rise communities. Six of the communities are located in Arizona, three are in Colorado and two are in each of the Carolinas. Nevada and Georgia both have one property each.
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This portfolio has been assembled over the last six years. Six of the assets are Class A properties and nine are currently being renovated; the properties average 14 years old. Under Fairfield’s ownership, the value-add assets will continue to see renovations as the company has been focused on recapitalization opportunities over the last year.
JLL represented Sunroad in the transaction with a team led by Senior Managing Directors Aldon Cole, Roberto Casas and Tim Wright alongside Vice President Bharat Madan. For Colton Apartments in Henderson, Nev., Managing Director Mark Wintner led the transaction.
All’s fair for Fairfield
Last week, in a separate transaction also arranged by JLL, Fairfield purchased an Orlando-area community for $81.9 million. The property has 300 units located nine miles away from downtown Orlando.
On the firm’s development side, Fairfield delivered West Village Poway in Poway, Calif., its newest multifamily project in several decades. The residential community finished construction in April. It was built on 6.6 acres and includes five buildings, three of which are fully residential.
