Slate Asset Management has acquired a multifamily portfolio in the Sunbelt for $226.5 million, a move that fits its strategy of buying properties at favorable price points.
This purchase includes six garden-style properties, covering 1,600 units overall. They are located in markets across three states: Georgia, Arizona, and Florida, with concentrations around major metropolitan statistical areas including Atlanta, Phoenix and Tampa.
The assets are all within proximity to retailers, which range from service providers and essential goods to grocery stores. This, according to Slate, makes the portfolio more attractive for rental seekers. Already, Slate said in a statement that the properties are "well occupied, with long-term growth potential through mark-to-market rent increases." Plus, this fits the real estate investor's strategy of acquiring assets below the cost of replacement.
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“We are pleased to announce our latest investment in the multifamily real estate sector – a performing portfolio of defensive assets with attractive fundamentals serving essential needs in markets with strong demographics,” Peter Tsoulogiannis, partner and chief investment officer at Slate, said in a statement.
“We have strong conviction in the long-term demand for housing, and despite macro volatility, our investment philosophy remains unchanged; we continue to focus on acquiring below replacement cost with below market in-place rents in order to generate meaningful cash flow growth.”
Furthermore, Slate is looking to capitalize on the housing shortage, while noting that starts have declined. It forecasts that multifamily will benefit, as a result.
Meanwhile, for the 23rd straight month in May, rents headed south. They were down 50 basis points year-over-year to $2,139, according to a report from Markerr. That comes as multifamily landlords have continued to deal with an influx of supply.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
