Home News Dallas firm buys thousands of apartments in the Southeast for about $500 million

Dallas firm buys thousands of apartments in the Southeast for about $500 million

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A Dallas firm and two partners have staked out thousands of apartments in the Southeastern United States for about $500 million.

Dallas-based RREAF Holdings LLC partners with Miami-based 3650 REIT and St. Augustine, Florida-based DLP Capital to bring a portfolio of more than 2,744 apartments across 10 properties in the Southeast to approximately $500 million the company said on Thursday. .

Kip Sowden, Chief Executive Officer of RREAF Holdings, said the deal “will provide affordable prices to renters in the Southeast as RREAF continues its business plan of providing superior living options at affordable prices. “This is a milestone for us to provide quality housing options for our customers.”

Kip Sowden is the Chairman and CEO of RREAF Holdings, which partnered with 3650 REIT and DLP Capital to purchase approximately $500 million in apartments.(RREAF Holdings)

This is the third portfolio deal by the three companies in the past year. 4,000 units purchased across the Sunbelt in November When Two apartments in Corpus Christi in July.

RREAF said the deal is believed to be one of the largest multi-family housing deals of 2022 and will inject significant amounts of capital into “high-quality labor rental units.” RREAF’s in-house property management company oversees the apartments.

The apartment complex was built between 1998 and 2012 and is 93% occupied as of October. In most cases there are no new apartments within a 5 mile radius. According to CBRE Group, all the apartments were purchased from his one seller, Hamilton Point Investments LLC.

Buyers plan to upgrade amenities such as electric vehicle charging stations, dog runs, pickleball courts and a business center with fiber cables. We will also be updating the pool, tennis courts, outdoor kitchen, entertainment packages, clubhouse and lighting.

Jonathan Ross, co-founder and managing partner of 3650 REIT, said in a statement that the transaction “will continue to drive demand in these markets, where immigration patterns are facing significant growth in the Sunbelt state. “It reflects our continued belief in the strength of the multifamily market.” On the ongoing housing shortage and national economic headwinds. “

The Waterford Place apartments in Greenville, North Carolina, along with nine condominium units, were acquired in the transaction.
The Waterford Place Apartments in Greenville, North Carolina were acquired in the deal, along with nine other multi-family homes in the Southeast.(RREAF Holdings)

Portfolio includes:

  • Glen at Polo Park, 356 Unit, Bentonville, Ark.
  • River Pointe, 384 Unit, Mormel, Ark.
  • Village at Mill Creek, 208 Units, Statesboro, GA
  • Echo Ridge, 208 Unit, Indianapolis
  • Pheasant Run, 184 Units, Indianapolis
  • Waterford Place, 432 Unit, Greenville, NC
  • Booked with Longpoint, 210 Units, Hattiesburg, Mississippi.
  • Westmoor Traditions, 200 Units, Oklahoma City
  • 5iftyOne, 322 units, Tradun Heights, Stillwater, Oklahoma.
  • Broad River Trace, 240 Units, Columbia, South Carolina

DLP Capital Founder and CEO Don Wenner said in a statement: “Additionally, we are able to offer targeted returns to loyal investors who believe in our mission.”

RREAF acquires, develops, manages and develops master plans for apartments, hotels and resorts. Planned project in Midlothian revealed in MayThe company employs more than 500 people throughout the Sun Belt and manages more than $5 billion in assets in 15 states.

Headquartered in Miami, 3650 REIT is a national commercial real estate lender with offices in Dallas, New York, Los Angeles, Atlanta and Nashville. DLP Capital is a real estate investment and financial services firm with over $4 billion in assets under management.

Shea Campbell, Colleen Hendrix, Ashish Cholia and Malcolm McComb of CBRE’s Southeast Multifamily team represented the seller.

“The multifamily fundamentals in these markets are very attractive and we expect these properties to continue to perform well,” Hendricks said in a statement. Nonetheless, the transaction achieved key business objectives for both the buyer and seller.”

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