Private real estate investment and development firm RREAF Holdings, in partnership with 3650 REIT and DLP Capital, have announced the acquisition of a Southeast multifamily portfolio with a capitalization of approximately $500 million. As the trio’s third portfolio acquisition in less than 12 months, the portfolio includes 10 multifamily properties consisting of over 2,700 units located in Arkansas, Georgia, Indiana, Mississippi, North Carolina, Oklahoma, and South Carolina.
“The closing of the Southeast Multifamily Portfolio III marks a milestone for our firm for affordable, quality housing options to renters in the Southeast as RREAF continues our business plan of providing superior living options at an affordable price,” says Kip Sowden, CEO of RREAF Holdings. “The size and versatility of the portfolio represents our continued success. We would like to extend a thank you to our partners, DLP Capital and 3650 REIT, on their partnership in this landmark portfolio.”
Purchased from one seller, the acquisition, spearheaded by RREAF, will infuse significant capital into quality, workforce rental units. Built between 1998 and 2012, the properties are primarily in suburban-metro areas with no new multifamily properties within a 5-mile radius of most. The properties have a 93% collective occupancy, and significant capital renovations will be made to all units. Upgrades to amenities will include electric vehicle charging stations, dog runs, pickleball courts, and business centers with fiber cable. Pools, tennis courts, outdoor kitchens, entertainment packages, clubhouses, and more efficient lighting will also be updated.
RREAF Holdings
Glen at Polo Park in Bentonville, Arkansas.
The $500 million portfolio includes two properties in Arkansas, Glen at Polo Park in Bentonville and River Pointe in Maumelle; Village Mill Creek in Statesboro, Georgia; two properties in Indianapolis, Echo Ridge and Pheasant Run; Waterford Place in Greenville, North Carolina; Reserve at Long Point in Hattiesburg, Mississippi; two properties in Oklahoma, Traditions at Westmoore in Oklahoma City and 5iftyOne at Tradan Heights in Stillwater; and Broad River Trace in Columbia, South Carolina.
“SMPIII marks our third portfolio transaction with RREAF and DLP Capital, totaling more than 7,500 multifamily units, and is a continuation of our focus on building long-term relationships with best-in-class sponsors. RREAF has consistently demonstrated its ability to outperform the market while delivering high-quality attainable housing to their residents, and we look forward to continuing to support its strategic growth plans,” says Jonathan Roth, co-founder and managing partner of 3650 REIT.
“The transaction also reflects our continuing belief in the strength of the multifamily market in the Sun Belt states as migration patterns continue to drive demand in these markets in the face of the ongoing housing shortage and economic headwinds nationwide.”
RREAF Holdings
Traditions at Westmoore in Oklahoma City.
RREAF’s fully integrated property management firm, RREAF Residential, will be taking over property management on all assets. RREAF’s multifamily division has over 12,000 units under ownership and transaction volume totaling $1.4 billion in the past year. In addition to equity capital provided by the three portfolio partners, financing was provided by Nathan Stone and Guy Griffith at Berkadia.
“The affordable housing crisis pervades every state in the nation, making this multifamily transaction all the more significant,” says Don Wenner, founder and CEO of DLP Capital. “Through our collaborative investment and our mission to keep these apartments affordable for the local workforce, we will impact hundreds of families who want to live where they work. Additionally, we can deliver targeted returns to our loyal investors who believe in our mission.”