DALLAS — RREAF Holdings, DLP Capital and 3650 REIT have partnered to acquire a portfolio of 10 multifamily properties across the Southeast for $500 million. This is the partnership’s third portfolio acquisition this year. The seller was not disclosed.
The communities were built between 1998 and 2012 and total approximately 2,750 units, with a 93 percent collective occupancy.
The properties include Glen at Polo Park in Bentonville, Ark.; River Pointe in Maumelle, Ark.; Echo Ridge and Pheasant Run in Indianapolis; Traditions at Westmoore in Oklahoma City; 5iftyOne at Tradan Heights in Stillwater, Okla.; Waterford Place in Greenville, N.C.; Reserve at Long Point in Hattiesburg, Miss.; Village Mill Creek in Statesboro, Ga.; and Broad River Trace in Columbia, S.C.
The buyers plan to implement renovations to all units. New upgrades to property amenities will include electric automobile charging stations, dog parks, pickleball courts and business centers. Pools, tennis courts, outdoor kitchens, entertainment areas, clubhouses and lighting will also be updated.
The portfolio acquisition will introduce capital into workforce rental units in the region. According to the National Multifamily Housing Council, 4.3 million more apartments are needed by 2035 to meet the demands for rental housing.
“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.”
In addition to equity capital provided by the three portfolio partners, financing was provided by Nathan Stone and Guy Griffith at Berkadia, a multifamily investment sales advisor, mortgage banker and loan servicer based out of New York City.
Dallas-based RREAF’s in-house property management company, RREAF Residential, will manage all acquired properties. RREAF Residential is a fully integrated property management firm specializing in workforce housing.
— Channing Hamilton