TORONTO—Starlight Investments, which already manages some 11,000 apartment units in the US, said Tuesday it had partnered with two Canadian institutions on a venture to acquire $1.3 billion of class A multifamily across the Southeast and Southwest. The partnership between Starlight, the Public Sector Pension Investment Board and the Alberta Investment Management Corp. (AIMCo) has launched its acquisition program with Parkhouse Apartment Homes, a newly constructed property in Denver. Deal terms were not disclosed.
Micheal Dal Bello, SVP of real estate at AIMCo, says the partnership “capitalizes on the synergies of our respective investment programs and creates a long-term platform to generate the returns required of our clients and stakeholders.” It's targeting recently built, garden style multifamily communities in the suburban markets of Atlanta; Austin and Dallas in Texas; Denver; Orlando and Tampa in Florida; and Phoenix.
Specifically, the partnership will target submarkets that demonstrate superior rental income growth potential due to positive multifamily dynamics including compelling population, economic and employment growth. As case in point, Parkhouse, a 465-unit complex consisting of 20 three-story buildings, is located in Denver's prosperous northern corridor.
Denver itself is among the fastest growing US metro areas with the lowest unemployment rate. It's a city where where the key renter demographic of Millennials represent the largest and fastest growing population group. Between them, Starlight's two institutional partners have nearly US$250 billion in assets under management.
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