Victor Garcia’s Post

KKR just closed on a $2.1B purchase of 5,200 apartment units from Lennar's multifamily portfolio. This is on the heels of Blackstone's pending $10B acquisition of AIR Communities. The big guys are scooping up deals while most of the market waits. Are Lennar and AIR just realistic sellers or are KKR and Blackstone just more bullish than the rest of the market? https://lnkd.in/gjptjBw2

KKR makes a big move into the apartment market with their $2.1B acquisition of over 5,200 apartment units. The acquisition involved newly built developments from California, Texas and NJ. Building starts with five or more units dropped 51.7% year-over-year to a seasonally adjusted rate of 278,000 in May. This reflects that over-building has occured in many markets with new rents declining. Long term investors will see the drop in building activity as a positive. Only four large metros have rents rising at 5% over the past year. Apartment rents in the US are down -1% YoY. Labor Dept data shows new rents down even more at -5% year-over-year. Are there buyers and sellers for multi-family assets? Yes! Thinking of buying or selling please contact me. Stay informed about the evolving real estate landscape by following me on LinkedIn. #realestate #apartments #multifamily #privateequity #deals #acquisition #california #texas #newjersey #kkr #blackstone #lennar #sanfrancisco #losangeles #sandiego #marin #sonoma

Multifamily Real Estate Perspective KKR's recent acquisition of over 5,200 apartment units for $2.1 billion highlights a growing confidence in the multifamily housing market. Despite recent struggles in the sector, such as flat rent growth and higher interest rates that have suppressed property valuations, prominent investors are signaling a potential rebound. With a downturn in new construction starts suggesting a forthcoming decrease in supply, rent increases are expected to accelerate by 2026. This shift is creating attractive investment opportunities, particularly as distressed properties become more prevalent. For investors, this could be a strategic time to consider multifamily real estate, especially in markets where future supply constraints are likely to drive up rents. https://lnkd.in/gPC4rFWt

Institutional investors are jumping back into the market! Stabilizing supply dynamics and continued demand for multifamily housing is providing support for future rent growth. This week, KKR solidified its bet that trend will continue with its $2.1 billion portfolio acquisition of over 5,200 apartments in markets nationwide. With institutional multifamily pricing down about 20% from its peak nearly 2 years ago, could this acquisition and others recently completed by private equity backers be a sign the institutional investment market more broadly is seeing a bottom in multifamily pricing? Private client multifamily has seen a similar decrease in value over the last 2 years but has enjoyed a pick-up in investment activity YTD, with investors lured in by various factors. Many times, this includes an attractive cost basis, potentially lower than replacement cost. Time will tell if wagers by these early movers pay off, but with stabilizing costs of capital, additional clarity looking forward, and the big fish beginning to bite, we could be in for a years-long bull market. What do you think? Looking at any potential investments yourself? Send me a message . I'll be happy to offer any insights CBRE has available to help you make the best investment decision you can. #SoCalPrivateClientLending #AgencyLending #FreddieMac #FannieMae #Multifamily #MultifamilyInvesting #MultifamilyRealEstate #MultifamilyFinance #CommercialRealEstate #CommercialRealEstateFinance #PrivateClient #PrivateClientLending #CRE #CREF #CREFinance #CBRE #CapitalMarkets #Debt #Finance #InvestmentProperty #1031Exchange #Refinance #Acquisitions #Loans #LoanOptions #MortgageBroker #MortgageBanking #CMBS #BankLending #DebtFunds #LosAngelesRealEstate #LARealEstate #CaliforniaRealEstate #CARealEstate #OrangeCountyRealEstate #OCRealEstate #SanDiegoRealEstate

$2.1B for Multi. #WednesdayCRE #CommercialRealEstate #CommercialDebt #CommercialInsurance KKR has acquired a portfolio of 18 multifamily assets from a closed-ended fund sponsored by Quarterra Multifamily for $2.1 billion. The recently-built, Class A portfolio consists of over 5,200 units concentrated primarily in growing coastal and sunbelt markets including California, Washington, Florida, Texas, Georgia and North Carolina, Colorado and New Jersey. The portfolio, a mix of mid-rise and high-rise buildings, serves high-growth metropolitan areas where new supply will slow down significantly looking out beyond the next couple years, according to Daniel Rudin, Managing Director at KKR. #SourcingAndSelling #SellingAndSourcing #Retwit #2024 ~ If you have real estate, and you are willing to entertain offers, have debt to refinance, or in need of insurance for your properties, reach out to me with the details: [email protected] 305.203.2070 ~ Contact Us for Commercial Investments, Financing and Insurance. ~ Multifamily, Industrial, Hotels, Office, Retail, Development Sites, Plus. #ListWithLance #LanceLoans #LetLanceInsureYou #CRE #Owners #InvestmentProperties #Multifamily #Industrial #Hospitality #Retail #Development #Construction #Commercial #CommercialTransactions #CommercialFinance #CommercialInsurances #CommercialTitleAndClosing #CommercialProp https://lnkd.in/gVC85mAY

Are apartment rents headed higher again? KKR has completed its largest-ever purchase of apartment buildings, the latest in a string of big-ticket deals, signaling that some of the most prominent investment firms are betting on a broad rebound for multifamily housing.  The New York-based private-equity firm paid $2.1 billion for more than 5,200 apartment units across the country, from California and Texas to New Jersey, KKR said. The deal for the multifamily properties, which are 18 new mid- and high-rise buildings, closed Tuesday. KKR’s acquisition and other recent major purchases could indicate a growing confidence among large investors that rents and values for apartments will soon begin rising again. Rent is already starting to pick up in several Midwest and Northeast cities. In April, Blackstone agreed to pay $10 billion for the landlord Apartment Income REIT, while last month Brookfield bought a portfolio of 7,000 apartments for $1.55 billion. #inflation #housing #apartments #rents #privateequity #KKR #multifamily #housingshortage #blackstone #brookfield #commercialrealestate

#privateequity #realestate #apartmentlandlords #REITs #Blackstone 'The stocks of apartment landlords staged the biggest rally in nearly four months after Blackstone Inc., the world’s largest commercial real estate owner, stepped up its bet on the industry. An index tracking the group rose over 4%, the largest one-day jump since mid-December, after Blackstone said it plans to acquire Apartment Income REIT for roughly $10 billion. While the industry’s shares remain well below their early 2022 peak, the gain erased this year’s losses and was seen as bolstering investors’ confidence in the sector. The planned purchase follows Blackstone’s agreement in January to buy the single-family-home landlord Tricon Residential Inc. for $3.5 billion, and Blackstone President Jon Gray previously told investors that “real estate values are bottoming.” Apartment landlords are now the best-performing group among the REIT industry. Following Monday’s gain, the sector is up 0.9% for the year after being down more than 3% at Friday’s close. Piper Sandler analyst Crispin Love said it may be a sign that broader deal activity is poised to pick up in the real estate industry, making him more positive on 2024. “We view Blackstone to be in an advantageous position with patient capital and the ability to move quickly with size given its substantial real estate dry powder,” Love wrote in a note to clients.'

🔑 A major move in the multifamily market! Equity Residential is set to acquire 11 apartment complexes from Blackstone for $964 million, adding over 3,500 units to its portfolio in key growth markets. This acquisition is not just the largest by a public REIT in seven years, but also a strategic bet on the recovery of rents and property values. 🏙️ #MultifamilyInvesting #GrowthMarkets

🔑 A major move in the multifamily market! Equity Residential is set to acquire 11 apartment complexes from Blackstone for $964 million, adding over 3,500 units to its portfolio in key growth markets. This acquisition is not just the largest by a public REIT in seven years, but also a strategic bet on the recovery of rents and property values. 🏙️ #MultifamilyInvesting #GrowthMarkets

Blackstone Makes a $10 Billion Bet On Multifamily Units As Real Rents Begin Re-Accelerating… The Wall Street Journal's headline announced Blackstone's $10 billion acquisition of Apartment Income REIT, taking the company private. "The acquisition is Blackstone's largest transaction in the multifamily market," WSJ pointed out. This move signals the firm's bullishness on the rental housing market, especially when rents are beginning to re-accelerate. Blackstone agreed to purchase AIR Communities for $39.12 a share, representing a 25% premium to the company's closing share price on Friday. The deal is being completed through the investment management company's $30.4 billion global real-estate fund. Blackstone favors rental housing as one of the hottest places in the commercial property market to invest. The acquisition of AIR will give the investment manager exposure to 76 rental housing communities in coastal markets, including Boston, Miami, and Los Angeles. Blackstone has been aggressively increasing investments in CRE markets, a major bet the Federal Reserve's interest rate hiking cycle has plateaued and cuts near…. #blackstone #multifamilyrealestate #interestrates