Black Creek Group recently bought properties in two hot real estate markets, The Daley at Shady Grove Metro in Rockville, Md., and Broadstone Winter Park in Winter Park, Fla. The acquisitions were made by the firm utilizing its Black Creek Diversified Property Fund—a perpetual-life, nontraded monthly NAV REIT that owns and operates high-quality commercial real estate across the industrial, office, retail, and multifamily sectors.
The Daley is a 333-unit property located less than half a mile from the Shady Grove Metro Station and offers a mix of studio, one-bedroom, and two-bedroom units. It was 95% leased at the time of closing. Amenities include an on-site Starbucks, a swimming pool, courtyards with fire pits, a fitness center, a club room, a conference room, an on-site nail salon, a pet spa, and a private dining room. The units offer stainless steel appliances, pantries, quartz countertops, balconies, patios, and walk-in closets.
Broadstone Winter Park is a 268-unit property in Winter Park, Fla., that was 85% leased at the time of closing. The Broadstone community includes studio, one-bedroom, two-bedroom and three-bedroom units. It’s located near the intersection of Orlando Avenue and U.S. Route 17, less than a half mile from a Whole Foods Market. Amenities include a skydeck, an indoor dog spa, a 2,000-square-foot bike repair room, a swimming pool with cabanas, a business center, and fitness facilities. The high-ceilinged units feature programmable thermostats, granite countertops in the bathrooms, gourmet kitchens, LED lighting, and USB receptacles.
The acquisition of both properties came after the firm completed the sale of 655 Montgomery St., a 263,000-square-foot office building in San Francisco, and Rialto, a 155,000-square-foot office project in Austin, Texas. “Focusing on value creation across market cycles, we understand that demand for property types will change, which is why we are an active portfolio manager prepared to capitalize on opportunities as conditions change,” said Greg Moran, Black Creek Diversified Property Fund’s chief investment officer. “Multifamily and industrial are two sectors that continue to exhibit strong demand and fundamentals so our expansion within those areas is likely to continue to be a priority.”
The fund has already had a busy year with over $450 million of acquisition and disposition activity. It has increased its industrial holdings with the acquisition of a 245,000-square-foot asset in San Antonio and a 218,000-square-foot asset near Cincinnati. In addition to the sale of the office properties in San Francisco and Austin, the fund also disposed of two retail outparcels in Raleigh, N.C. Currently, Black Creek Diversified Property Fund holds 49 properties totaling 8.2 million square feet at 92% leased.
“Historically commercial real estate has been one of the strongest performing asset classes, yet many individual investors did not have access to it and as such are underallocated,” said Raj Dhanda, CEO of Black Creek Group. “Now the asset class is becoming more accessible with investor-friendly structures and greater transparency, which means we can only expect to see investors seek to increase their allocations—driving capital, which in turn will support an already strong market.”
