$534M Sunbelt Multifamily Portfolio is First of Three Tranches

RREAF Holdings LLC with its partners DLP Capital and 3650 REIT recently acquired a 13-asset multifamily portfolio in the Sunbelt region consisting of 2,000-plus units. The entirety of the portfolio totals 21 multifamily communities and 4,000-plus units valued at $534 million. This is the first tranche of a large three-phase acquisition which is slated to close by early November.

“This large acquisition is a culmination of months of negotiations, due diligence, research and financial structuring. This is one of the largest real estate transactions in the country since the COVID outbreak,” said Kip Sowden, RREAF’s chief executive officer.

RREAF has acquired $1 billion of real estate assets in the last 12 months.

“Impacting the crisis of affordable workforce housing is at the heart of DLP Capital’s mission,” said Don Wenner, chief executive officer and founder of DLP Capital. “This portfolio of communities will provide safe and comfortable homes to thousands of working families. We can do good while doing well for our investors.”

DLP Capital has $2 billion of assets under management.

“The Sun Belt region of the country continues to see in-migration from higher cost-of-living areas, creating a continued need for well-located attainable housing in the region,” says Jonathan Roth, managing partner and co-founder of 3650 REIT.

3650 REIT is taking a preferred equity position in the transaction.

Berkadia arranged the Freddie Mac acquisition financing for the entire transaction and Cushman & Wakefield’s Taylor Bird, Andrew Brown and Jaime Slocumb represented the sellers for the first tranche.

“This portfolio is located across the Sun Belt in several high-growth markets with proven value-add stories, strong demographics and access to major employers,” Bird said. “The portfolio’s value-add makeup fits the ideal profile of an asset class that has outperformed during the pandemic.”