NEW YORK CITY—An affiliate of locally-based DRA Advisors has sold the Southeast Residential Portfolio—a grouping of 24 multifamily properties—for more than $720 million. The purchase, made by San Diego-based Strata Equity Group, is among the year's largest multifamily transactions.
The SERP portfolio The properties span four states: Georgia, North Carolina, Tennessee, and South Carolina, and consist of 6,294 units in suburban locations throughout 13 metro areas. CBRE capital markets' debt & structured finance team secured approximately $500 million of financing on behalf of Strata for the acquisition.
“We are in a favorable market for sellers and buyers to transact in volume,” notes Malcolm McComb, vice chairman, institutional properties, CBRE, who led the transaction for the seller. “For assets with a consistent and compelling investment thesis, sellers can achieve attractive pricing with less friction. At the same time, the scale of portfolios allows buyers to make strategic, transformative moves.”
Adds Strata Equity Group president David Michan, “This portfolio affords us with a truly unique opportunity to scale our platform while also securing a very attractive, risk-adjusted return for our investors.”
“We believe the long-term fundamentals of the apartment sector, particularly Class B product, remain healthy; our investment in SERP reinforces that belief,” asserts Scott Wittman, Strata's director of investments.
Bill Chiles of CBRE's San Diego office and Robert LaChapelle of CBRE's Atlanta office secured the loans for the portfolio. Strata Equity Group diversified the loan terms to match each individual asset and will be financing the portfolio with a mixture of seven- and ten-year fixed and floating rate loans provided by Freddie Mac.
“We were able to procure multiple tranches of loan structures to best fit the client's individual asset strategy,” says Chiles. “We negotiated a portion of the portfolio under a newly-created version of the Freddie Mac Revolving Credit Facility. This facility gives Strata Equity Group more financing flexibility for certain assets, as well as an attractive vehicle for new purchases with similar business plans.”
The properties range in age from 1985 to 2000, with an average year built of 1996. The mix of the assets is diversified, with 72% of the units being two and three-bedroom floor plans and a larger-than-average unit size of approximately 1,100 square feet.
The portfolio offers proven performance with a long track record of rising rents and consistent occupancy. Over the last three years, net rental income has increased 12.2% while averaging 95.3% occupancy.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
The SERP portfolio The properties span four states: Georgia, North Carolina, Tennessee, and South Carolina, and consist of 6,294 units in suburban locations throughout 13 metro areas. CBRE capital markets' debt & structured finance team secured approximately $500 million of financing on behalf of Strata for the acquisition.
“We are in a favorable market for sellers and buyers to transact in volume,” notes Malcolm McComb, vice chairman, institutional properties, CBRE, who led the transaction for the seller. “For assets with a consistent and compelling investment thesis, sellers can achieve attractive pricing with less friction. At the same time, the scale of portfolios allows buyers to make strategic, transformative moves.”
Adds Strata Equity Group president David Michan, “This portfolio affords us with a truly unique opportunity to scale our platform while also securing a very attractive, risk-adjusted return for our investors.”
“We believe the long-term fundamentals of the apartment sector, particularly Class B product, remain healthy; our investment in SERP reinforces that belief,” asserts Scott Wittman, Strata's director of investments.
Bill Chiles of CBRE's San Diego office and Robert LaChapelle of CBRE's Atlanta office secured the loans for the portfolio. Strata Equity Group diversified the loan terms to match each individual asset and will be financing the portfolio with a mixture of seven- and ten-year fixed and floating rate loans provided by
“We were able to procure multiple tranches of loan structures to best fit the client's individual asset strategy,” says Chiles. “We negotiated a portion of the portfolio under a newly-created version of the
The properties range in age from 1985 to 2000, with an average year built of 1996. The mix of the assets is diversified, with 72% of the units being two and three-bedroom floor plans and a larger-than-average unit size of approximately 1,100 square feet.
The portfolio offers proven performance with a long track record of rising rents and consistent occupancy. Over the last three years, net rental income has increased 12.2% while averaging 95.3% occupancy.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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