If not for a single portfolio transaction—the largest deal of the year to date—overall multifamily deal volume would’ve fallen 3% year over year (YOY) in the third quarter. The Greystar Growth and Income Fund, LP, which is led by Greystar Real Estate Partners and its initial founding capital partners, APG Asset Management NV, GIC, and Ivanhoé Cambridge, completed the acquisition of Monogram Residential Trust in September. The portfolio Greystar, the nation’s largest apartment operator, acquired included investments in 48 multifamily communities in 10 states comprising 13,438 apartments. The total portfolio transaction value was approximately $4.4 billion, including Monogram's joint venture with Dutch fund manager PGGM and debt assumed or refinanced.
In a given year, says Jim Costello, senior vice president at Real Capital Analytics (RCA), 23% of all deal volume is tied up in portfolios or entity-level transactions. Through mid-November, those types of deals made up about 23% of all deal volume, he adds. Portfolio transactions have ebbed and flowed in recent years, from a high of 32% of all deals in the fourth quarter of 2015 to a low of 16% in the third quarter of 2016.
Here's a look at the top 10 deals of 2017, according to RCA:
1. Monogram Portfolio
Greystar Growth and Income Fund, from Monogram
$4.4 billion
2. Lone Star Portfolio
Harbor Group International, from Lone Star Funds
$1.8 billion
3. Alterra at Overlook Ridge
Rockpoint Group, from Roseland Residential Trust
$1.43 billion
4. IMT Portfolio
LivCor, from IMT Real Estate Group
$685.5 million
5. Palazzo Portfolio
Aimco, from J.P. Morgan Asset Management
$451.1 million
6. 180 Water Street (Manhattan)
Metro Loft, from Emmes, Ohio PERS
$405 million
7. Monaco (Jersey City, N.J.)
Roseland Residential Trust, from Prudential Insurance
$256.7 million
8. The Cove at Tiburon (Strawberry, Calif.)
Lightstone Real Estate Income Trust and Lightstone Value Plus REIT III, from Rockpoint Group
$255 million
9. Pacific Ridge (San Diego)
American Assets Trust, from Carmel Partners
$232 million
10. Tower 12 (Seattle)
Weidner Apartment Homes, from Continental Properties
$224.9 million
Source: Real Capital Analytics
