David Arthur

(Save the date: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26.)

NEW YORK CITY-Brookfield Asset Management Inc. on Monday said it had agreed to buy a portfolio of 19 multifamily communities for $414 million from Babcock & Brown Residential. Totaling 4,892 units, the properties are located mainly in the Charlotte and Raleigh-Durham submarkets, with some in South Carolina and Virginia.

Brookfield says the portfolio’s concentration in Charlotte and Raleigh-Durham 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; BAMA has assumed them as part of the transaction.

Fairfield Residential, an affiliated company that is Brookfield’s platform for investments in US multifamily residential properties, has an existing geographic footprint in these same markets and will manage the assets in the portfolio, the release states. Brookfield plans on investing $30 million to maximize value in the portfolio, selectively upgrading and repositioning assets to increase rents and return on investment. Fairfield currently manages about 50,000 apartments in 40 markets across the US.

The deal brings Brookfield’s multifamily portfolio to approximately 20,000 units across the US. “The acquisition of this attractive portfolio adds to Brookfield’s significant multifamily platform and positions us for continued growth in this property sector,” says David Arthur, managing partner at Brookfield Asset Management, in a release. A spokesman for Brookfield declines to comment on the company’s future acquisition plans.