Source: Brookfield Asset Management / #Multifamily #Apartments
NEW YORK, NY - Brookfield Asset Management Inc. announced the acquisition of portfolio of 19 apartment communities with 4,892 units located in North Carolina, South Carolina and Virginia for a total of $414 million from Babcock & Brown Residential.
This high quality portfolio is concentrated in the Charlotte and Raleigh-Durham sub-markets where strong economic and population growth is expected to yield superior occupancy rates and rental increases. The average occupancy of the portfolio is 92%. The portfolio is currently financed with individual non-recourse first mortgage loans which have been assumed as part of the transaction.
Fairfield Residential, an affiliate of Brookfield, has an existing geographic footprint in these same markets and will manage the assets in the portfolio. Brookfield intends to invest an additional $30 million to maximize value in the portfolio by selectively upgrading and repositioning assets to increase rents and return on investment. This transaction will bring Brookfield’s growing multifamily portfolio to approximately 20,000 units throughout the United States.
“The acquisition of this attractive portfolio adds to Brookfield’s significant multi-family platform and positions us for continued growth in this property sector,” said David Arthur, managing partner at Brookfield Asset Management.
Babcock & Brown was advised by Robert W. Baird & Co.
Brookfield Asset Management Inc is a global alternative asset manager with approximately $150 billion in assets under management. Fairfield Residential is among the most experienced multifamily real estate operating companies in the United States and provides acquisitions, entitlement, development, construction, redevelopment, property and asset management, and disposition services to its joint venture partners and affiliates, and to third parties. Fairfield is active in 40 geographically diverse markets and currently manages approximately 50,000 apartment homes across the U.S. Fairfield has developed and acquired $20 billion of real estate assets and has sold more than $13.0 billion in multifamily investments.