Multifamily Sun Belt Portfolio Trades For $886M

Clarion Partners and Blackfin Real Estate Investors have acquired a 3,564-unit portfolio of 12 multifamily properties in the Sun Belt, with Clarion Partners acting on behalf of its largest commingled fund. The seller is a partnership between PGIM Real Estate and CARROLL and the properties are located in Tampa, FL; Orlando, FL; Melbourne, FL; Charlotte, NC; Wilmington, NC; and Nashville, TN.

The companies did not announce the price but in a separate announcement CARROLL and PGIM Real Estate reported they sold the portfolio for $885.5 million. 

“This acquisition further strengthens our position in fast-growing Sun Belt markets and also gives us exposure to a high-growth portfolio of seasoned multifamily properties which we can own below replacement cost and renovate for yield enhancement,” Clarion Partners Managing Director Thomas James says in prepared remarks.

The 12 communities were part of a 2017 acquisition of a 28-community workforce housing portfolio purchased as the first joint venture transaction between PGIM Real Estate’s US core-plus equity strategy and CARROLL.

The portfolio’s 12 garden-style, Class B multifamily communities were constructed between 1972-1995. Community amenities within the portfolio include clubhouses, pools, fitness centers, and basketball and tennis courts.

The buyers are planning a comprehensive renovation program, upgrading both unit interiors and community amenities. A majority of the portfolio’s units will be improved with new vinyl floors, new appliances, new countertops, LED lights, and other features.

Clarion and Blackfin have selected Greystar to serve as the property manager for the six assets located in Florida and Tennessee, and Drucker & Falk for the six properties located in North Carolina.

DLA Piper served as legal counsel for Clarion Partners on the deal.

Jim Mehalso, led the portfolio transaction for PGIM Real Estate. Easley Hooff, VP of Investments led CARROLL’s efforts. Eastdil Secured facilitated the transaction.