high demand equal strong opportunity
(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
WASHINGTON, DC-Kushner Cos. and Rockpoint Group are acquiring 10 Maryland apartment complexes in a transaction valued at close to $500 million, a source close to the deal tells GlobeSt.com. The acquisition of the 5,517-unit portfolio is being supported by a $371-million loan from Freddie Mac that was secured by Beech Street Capital. Kushner is taking a 25% ownership stake in the transaction.
The properties are located in Baltimore County, Baltimore City County and Prince George’s County, with the largest being the Commons at White Marsh, a 1,212-unit complex. Kushner and Rockpoint declined to comment on the deal.
The transaction is a significant one for Kushner, in particular, which is led by CEO Jared Kushner, since the company has been aggressively moving back into the multifamily space over the past 12 months. In addition to the 5,517 units in the portfolio that it is jointly acquiring, Kushner is also taking on the management of an additional 2,800 units in this deal.
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All together, the company has acquired 11,000 units over the past year. Most recently, as GlobeSt.com previously reported, it acquired a slew of multifamily assets totaling 338 units in New Jersey for $57.5 million. In an earlier interview with GlobeSt.com, Kushner said that the firm strongly believes that multifamily properties are a resilient and important asset class. “On a relative basis, there has been very little new construction over the past five years, while population and demand have both grown. We’re focused on infill locations and properties that we can improve through investing in upgrades and by managing them more efficiently.”
Rockpoint, as well, has been an active investor–in particular an active recycler of capital–this year but not with the same oomph that Kushner is exhibiting with its multifamily acquisitions. This year Rockpoint, together with the Beal Cos., sold the Fargo Building in Boston. Last year it sold an office asset in Berlin.