(Reuters) – Investment firm KKR bought a portfolio of 18 multifamily properties from a closed-end fund backed by developer Quarterra Multifamily for about $2.1 billion on Tuesday.
The portfolio includes 5,200 properties in California, Washington, Florida, Texas, Georgia, North Carolina, Colorado and New Jersey.
The global commercial real estate industry, particularly office real estate, is still experiencing its biggest downturn since the financial crisis of 2007-2009.
But non-bank lenders believe the worst is behind them and that they will be able to generate attractive returns as asset values recover.
“We believe this is an excellent time to invest in real estate as transaction activity begins to pick up steam after two years of volatility in commercial real estate markets,” said Justin Pattner, head of real estate investments for KKR in the Americas. .
KKR will partner with renowned multifamily real estate operators Carter-Haston, MG Properties and Dalan Real Estate to manage the assets.