RREAF Holdings, a private real estate investment and development firm, is partnering with DLP Capital and 3650 REIT on the acquisition of a $534 million multifamily value-add portfolio comprised of 21 communities and more than 4,000 units across the Sun Belt.
The first tranche of the three-phase acquisition closed in mid-September and includes 13 multifamily communities with more than 2,000 units in Alabama, Georgia, and Louisiana. Berkadia arranged the Freddie Mac acquisition for the entire transaction, which is slated to close by early November, and Cushman & Wakefield represented the seller, Carter Funds, for the first tranche.
RREAF has been active in the past 12 months, acquiring approximately $1 billion in real estate assets.
“This large acquisition is a culmination of months of negotiations, due diligence, research, and financial structuring. We are extremely pleased to have such leading institutional investors join us in this extensive portfolio,” said Kip Sowden, CEO at RREAF. “This is one of the largest real estate transactions in the country since the COVID outbreak.”
The Dallas-based firm has started to implement significant capital improvements across the portfolio as part of its strategic value-add business plan. RREAF Residential, a subsidiary of RREAF Holdings, and DLP Capital will serve as property managers for all 21 communities. Both management firms provide leasing, maintenance, marketing, and resident services for thousands of apartment homes around the nation.
“Impacting the crisis of affordable workforce housing is at the heart of DLP Capital’s mission,” said Don Wenner, CEO and founder of DLP Capital. “This portfolio of communities will provide safe and comfortable homes to thousands of working families, and we are excited to work together with partners that align with our mission and purpose.”
3650 REIT managing partner and co-founder Jonathan Roth added that with Sun Belt markets seeing in-migration from areas with a higher cost of living, there is a continued need for well-located attainable housing in the region. “This transaction aligns perfectly with 3650’s investment thesis and focus on properties with long-term potential, and we look forward to a successful relationship with sponsors RREAF and DLP Capital, both market leaders in multifamily in the Southeast U.S.,” he said.
