KKR acquires $2.1bn multifamily portfolio from Quarterra

KKR has acquired a $2.1bn multifamily portfolio of 18 assets concentrated in coastal and sunbelt markets from Quarterra Multifamily.

The Ellis multifamily development in Charlotte, North Carolina | BTR News
The Ellis multifamily development in Charlotte, North Carolina.

Global investment firm KKR has acquired a portfolio of 18 multifamily assets from a closed-ended fund sponsored by premier multifamily real estate development and operating company – Quarterra Multifamily – for approximately $2.1bn. KKR’s investment in this portfolio is made through its capital accounts advised by KKR.

KKR was advised on this transaction by Gibson Dunn & Crutcher LLP. Quarterra was advised by Troutman Pepper Hamilton Sanders LLP and Jones Lang LaSalle.

The recently built, Class A portfolio consists of over 5,200 units concentrated primarily in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey.

“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. 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.”

Justin Pattner, Partner at KKR and Head of Real Estate Equity in the Americas

The portfolio is a mix of mid-rise and high-rise buildings. They feature convenient access to urban, metropolitan areas, high-quality construction, modern amenities and excellent energy, water and waste efficiency.

KKR will work with leading multifamily operators, Carter-Haston, MG Properties and Dalan Real Estate to operate the assets.

“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. We are excited to invest in this portfolio.”

Daniel Rudin, Managing Director, KKR

KKR are also involved in the UK Build to Rent market. Amongst other activities, earlier this year the company acquired two of Quintain Living’s Build to Rent developments in Wembley Park for an undisclosed sum.