Global real estate investment management advisor BentallGreenOak has committed $400 million in equity on behalf of its institutional investors to a new U.S.-based multifamily housing strategic partnership with White Oak Partners.
With leverage and equity from White Oak, the partnership intends to acquire more than $1 billion of multifamily assets.
The partnership will be focusing on core and core-plus properties with 250 to 450 units ranging in value from $60 million to $100 million. Target markets will include desirable suburban and refill locations in large secondary U.S. metropolitan areas that have resilient economics and magnetic growth potential.
In its first two deals, the venture recapitalized two multifamily communities in the metropolitan areas of Tampa, Fla., and Nashville, Tenn., that were already owned by White Oak. The firm declined to release the names or addresses of the properties, but Multi-Housing News found that one of them is Sterling at Stonecrest located in Smyrna, Tenn. The next two deals, expected to close shortly, will be acquisitions of properties that are under contract. All four properties are described as high-quality, newer-vintage multifamily communities in White Oak’s target markets.
Mike Menzer, founder & CEO of White Oak, said in a prepared statement the firm believes the combination of BGO’s diverse and deep capital sources, scale of White Oak’s multifamily platform and shared views on managing risk and prioritizing resident satisfaction provide an alignment of interests for the partnership to be successful.
White Oak has acquired more than 13,000 multifamily units with a market value of $2.3 billion since inception. Earlier this week, White Oak’s acquisition of The Manor at Downingtown, a 244-unit community in Downingtown, Penn., was included in Multi-Housing News’ top five Northeast transactions this year for the period between January and May. The firm bought the property from Korman Communities for $42.3 million in February, making it the largest-sale-to-date in May in the Philadelphia market.
Kevin Rivest, managing director, investments, for BentallGreenOak, said in prepared remarks BGO’s objective of growing its multifamily portfolio through the acquisition of high quality assets in markets with strong growth drivers positions the firm to outperform in the next economic cycle. In the meantime, multifamily housing, particularly in White Oak’s target markets, has proven to be a durable, income-producing investment with relative low volatility in the current economic climate.