3650 REIT Invests in Apartment Transactions Worth $1.2B
Investments include $93.5 million preferred equity stake in 12-asset Southern portfolio and $89 million preferred equity stake in 21-asset Transcoastal portfolio.
The multifamily housing market in the Southeast and Sun Belt regions remain supply constrained, according to 3650 REIT.
And because many investors and renters would agree, 3650 co-founder and managing partner Jonathan Roth said his fund’s first major transactions from 3650’s preferred equity investment program have been made in those areas.
“These transactions reflect 3650’s commitment to investing in attainable housing and helping to improve the existing housing stock in these markets,” Roth said in prepared remarks.
3650 provided $93.5 million of preferred equity to recapitalize a 12-property portfolio with more than 3,500 residential apartments located throughout the Southeast United States.
3650’s preferred equity investment is subordinate to existing Fannie Mae senior mortgage loans. The portfolio is owned by a joint venture between Onyx Partners, led by Jeremy Rieder, and David Werner Real Estate. 3650’s capital contribution will recapitalize existing preferred equity and provide additional capital for renovation of the subject properties.
3650 REIT also recently provided $89 million of preferred equity to RREAF Holdings LLC for the acquisition of three separate multifamily portfolios totaling 21 properties with more than 4,000 residential apartments across the Southeast US.
The southern portfolio totals more than 3,500 multifamily apartment units including The Saulet, one of the largest multifamily properties in the city of New Orleans, spanning 703 units.