RREAF Buys Southeast Apartment Portfolio for $500M
Deal with Hamilton Point for workforce housing over seven states believed to be largest of the year.
A portfolio of 10 multifamily housing properties in the Southeast has been sold by private equity firm Hamilton Point Investments LLC to RREAF Holdings for $500 million in what is believed to be the largest transaction of the year, the company announced Thursday.
The transaction was done in partnership with 3650 REIT and real estate investment and financial services firm DLP Capital.
The portfolio of largely workforce housing homes comprises more than 2,744 units located in mostly suburban metro areas in Arkansas, Georgia, Indiana, Mississippi, North Carolina, Oklahoma, and South Carolina with no new supply within a five-mile radius.
It marks the trio’s third portfolio acquisition in less than 12 months.
Hamilton Point Investments is based in Connecticut and is led by principals Matthew Sharp and J. David Kelsey.
Deal Addresses ‘Affordable Housing Crisis’
According to Dallas-based RREAF, the properties were built between 1998 and 2012 and collectively are 93% occupied.
With the deal, significant capital will be infused do renovations on all units, including electric automobile charging stations, more efficient lighting and pickleball courts.
In addition to equity capital provided by the three portfolio partners, financing was provided by Berkadia’s Nathan Stone and Guy Griffith.
Jonathan Roth, co-founder and managing partner of 3650 REIT, said in prepared remarks, “The transaction also reflects our continuing belief in the strength of the multifamily market in the Sunbelt states as migration patterns continue to drive demand in these markets in the face of the ongoing housing shortage and economic headwinds nationwide.”
Don Wenner, Founder and CEO of DLP Capital, said in prepared remarks, “The affordable housing crisis pervades every state in the nation, making this multifamily transaction all the more significant.”
The $500-million portfolio includes two properties in Arkansas, Glen at Polo Park in Bentonville, and River Pointe in Maumelle; Village Mill Creek in Statesboro, Georgia; two properties in Indianapolis, Echo Ridge and Pheasant Run; Waterford Place in Greenville, North Carolina; Reserve at Long Point in Hattiesburg, Mississippi; two properties in Oklahoma, Traditions at Westmoore in Oklahoma City and 5iftyOne at Tradan Heights in Stillwater; and Broad River Trace in Columbia, South Carolina.