KKR Bolsters Multifamily Presence with a $2.1 Billion Acquisition from Quarterra Multifamily
In a strategic acquisition that underscores the resilience of the multifamily apartment industry, KKR investment firm has seized a significant market opportunity with the purchase of an 18-asset multifamily portfolio from Quarterra Multifamily, totaling $2.1 billion. This acquisition not only exemplifies the resilience and appeal of coastal and sunbelt markets but also showcases the robust appetite for Class A properties.
The portfolio, heralding from some of the nation’s rapidly expanding regions including California, Washington, Florida, Texas, Georgia, North Carolina, Colorado, and New Jersey, encompasses more than 5,200 units. These properties, predominantly recent constructions, strike the perfect balance between urban proximity and premier living standards, boasting exceptional attention to energy and water efficiency—a testament to Quarterra’s reputation for high-caliber developments.
Justin Pattner, KKR’s Partner and Head of Real Estate Equity in the Americas, remarked on the transaction, “We are pleased to acquire this exceptional, well-located multifamily portfolio from one of the world’s premier developers and owners of residential real estate. 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.”
This statement reflects KKR’s strategic vision. Coming out of a period of market dislocation, the firm identifies the potential for investments that align with recoveries in transaction activity. It’s also a nod to their operational strength and ability to capitalize on significant market opportunities.
Furthering this sentiment, Daniel Rudin, Managing Director at KKR, added, “Quarterra is known for their high-quality assets and we are thrilled to be working with them on this transaction. We like the fundamentals in this sector. This portfolio serves high-growth metropolitan areas across the country, where new supply will slow down significantly looking out beyond the next couple years.”
Rudin’s confidence in the sector’s fundamentals and the portfolio’s strategic positioning in high-demand growth metropolises signifies KKR’s investment insight. The synchronization of a slowing new supply against a backdrop of rapid urban growth presents an investment landscape ripe with long-term potential.
To optimize asset management, KKR will collaborate with premier multifamily operators such as Carter-Haston, MG Properties, and Dalan Real Estate. Legal advisories for the transaction were provided by Gibson Dunn & Crutcher LLP to KKR, while Quarterra received counsel from Troutman Pepper Hamilton Sanders LLP and Jones Lang LaSalle.
This acquisition marks yet another significant investment by KKR into the multifamily space, underlining the firm’s confidence in multifamily real estate as an enduring and dynamic component of the housing sector. It’s a move that showcases both the opportunities in real estate investment today and the strength of multifamily assets in an evolving market landscape.