BERLIN-Corestate Group has paid more than $206 million for a 40-property portfolio here, which includes more than 2,000 apartments. McLean, VA-based JER Partners sold the portfolio, which totals almost 1.8 million square feet.

The seller had purchased the properties with its joint partners between July-December 2005. Corestate, a division of Switzerland-based Corestate Capital AG investment company, said in a statement that the properties are rented for slightly lower than market levels, and that the sites are in sought-after micro-locations in the city. Corestate also assumed the portfolio debt. “The complex assumption of securitized CMBS debt is an extreme challenge for all parties involved and offers a good preview for the upcoming years,” said Ralph Winter, founder of Corestate, in a statement.

The portfolio also includes a $45 million development project in the city center, Corestate said in the statement. The company plans to invest significant capital expenditures to further improve the assets, it said in the statement, continuing a string of three other purchases this year with plans on improvements. Corestate also holds a majority interest in Frankfurt-based Youniq AG, which specializes in the development of student lifestyle apartments in the business segment of student living.