KKR Snags $2.1 Billion Multifamily Portfolio from Quarterra

Global investment firm KKR has acquired a portfolio of 18 multifamily assets from Quarterra, the real estate development arm of homebuilder Lennar. The deal, valued at roughly $2.1 billion, signifies KKR's confidence in the multifamily housing sector.

Focus on Sun Belt and Coastal Markets:

• The portfolio consists of Class A multifamily properties, primarily located in high-growth sunbelt and coastal markets like California, Florida, and Texas.
• These regions are experiencing strong population growth and a demand for quality rental housing.
• The assets are a mix of high-rise and mid-rise developments, catering to a variety of renters.

KKR's Strategic Move:

• This acquisition marks KKR's largest investment in the apartment sector to date.
• The firm views multifamily housing as a resilient asset class, offering stable cash flow and potential for appreciation.
• KKR plans to leverage its operational expertise to optimize the portfolio's performance.

Management and Financing:

• KKR will partner with established multifamily operators, Carter-Haston, MG Properties, and Dalan Real Estate, to manage the acquired assets.
• The investment is being made through capital accounts advised by KKR.

M&A Activity in Real Estate:

The real estate sector is witnessing significant M&A activity. Stay updated on the latest trends and potential investment opportunities using Financial Modeling Prep's (FMP) M&A data and analysis: link to FMP's M&A developer documentation.