SAN DIEGO — Strata Equity Group has received $494.8 million in acquisition financing to purchase a 12-property multifamily portfolio from Blackstone Real Estate Partners VII. The portfolio contains 4,635 units throughout Denver, Atlanta, Houston and Austin, Tex.
The 12 separate, fixed-rate loans were arranged by HFF’s Mona Carlton, Luke Vanderpoel, Chad Russell, Kris Lowe and Ginger O’Reilly. They were placed with Freddie Mac’s CME Program. The securitized loans will be serviced by HFF through its Freddie Mac Program Plus Seller/Servicer program.
“These acquisitions have expanded Strata’s national presence in line with our long-term investment strategy of delivering attractive, risk-adjusted cash yields in strategic growth markets to our investors,” says Carlos Michan, Strata’s CEO and founder. “Over the last five years, Strata has rebuilt its income property portfolio after having divested a majority of its assets during the last upcycle. These efforts have complemented Strata’s land banking and entitlement division.”
The portfolio contains institutional-quality assets built between 1989 and 2012. Most of the properties will undergo a renovation to upgrade the common-area amenities and finishes within the units.
“The location and vintage of these assets is appealing from an investment and portfolio diversification standpoint,” Michan continues. “The improvements will bolster demand and drive our value-added strategy.”
Strata purchased the portfolio for more than $650 million, according to industry sources. The firm partnered with a private Mexican investor group on this transaction. Blackstone acquired a majority of the properties included in this portfolio from General Electric Co. in 2013.
Strata’s legal advisor was Procopio, Cory, Hargreaves & Savitch LLP. Blackstone was represented by HFF.
Strata Equity Group is a San Diego-based, family owned real estate investment and management company founded by Michan and his two brothers. The firm owns and manages more than $1.5 billion in real estate assets, including more than 7,500 multifamily units, 375,000 square feet of commercial space and 18,000 acres of land.