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NEW YORK CITY-The Des Moines, IA-based Principal Real EstateInvestors has teamed with locally based Dermot Co. Inc. to acquirerent-stabilized apartments in the five boroughs. The joint venturehas an initial commitment of approximately $100 million and intendsto acquire as much as $300 million in properties in the near term.The pairing closed on its first acquisition—a two buildingportfolio in Astoria, Queens—last month. The venture did notrelease financial details regarding the individual transaction.

John Frandson, managing director of structured equity forPrincipal Real Estate, says the venture intends to "develop astrong investment platform in the New York City multifamily market.Rent stabilized apartments are an important asset class in New YorkCity." The firm chose to partner with Dermot due to the localfirm's in acquiring and managing rent stabilized apartments here.Dermot currently manages more than $1 billion in assets and owns orholds investments in more than 5,000 multifamily units. "We thinkthat this commitment is only a beginning in our working together toacquire and manage residential properties here," says AndrewMacArthur, a principal with Dermot.