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KKR Makes Massive $2.1 Billion Bet on U.S. Apartment Market
Investment firm KKR has made its largest foray into multifamily to date, acquiring more than 5,200 apartments from Quarterra Multifamily, a division of homebuilder Lennar. The deal, which closed Tuesday, is valued at $2.1 billion.
The recently-built, Class A portfolio is concentrated primarily in growing coastal and Sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey. The portfolio is a mix of mid-rise and high-rise buildings. KKR will work with leading multifamily operators Carter-Haston, MG Properties and Dalan Real Estate to operate the properties.
“We believe this is a great moment to invest in real estate, as transaction activity starts to pick up on the heels of two-years of dislocation in commercial real estate markets,” said Justin Pattner, partner at KKR and head of real estate equity in the Americas. “Across our platform we are finding opportunities where our scale, strong relationships, multiple pools of capital and local knowledge give us advantages as a buyer of large pools of high-quality, irreplaceable assets.”
KKR was advised on the transaction by Gibson Dunn & Crutcher LLP. Quarterra was advised by Troutman Pepper Hamilton Sanders LLP and JLL.
Pictured: A representative Quarterra Multifamily property, 17th & Broadway in Oakland, CA.
- ◦Sale/Acquisition
