NEW YORK & CHARLOTTE, N.C. - KKR, a prominent global investment firm, has announced the acquisition of a portfolio comprising 18 multifamily properties from Quarterra Multifamily, a top-tier real estate development and operation company. The transaction, valued at around $2.1 billion, includes over 5,200 units primarily located in high-growth coastal and Sunbelt markets.
The properties, a combination of mid-rise and high-rise buildings, are situated in states such as California, Washington, Florida, Texas, Georgia, North Carolina, Colorado, and New Jersey. These recently constructed Class A assets are noted for their strategic locations near urban centers, quality of construction, and modern amenities, along with efficient energy, water, and waste management systems.
Justin Pattner, Partner at KKR and Head of Real Estate Equity in the Americas, expressed enthusiasm for the acquisition, highlighting the strategic timing post a two-year dislocation in commercial real estate markets. Pattner emphasized the advantages KKR leverages through its scale, relationships, and local expertise in acquiring high-quality assets.
Daniel Rudin, Managing Director at KKR, remarked on the collaboration with Quarterra and the strong fundamentals of the multifamily sector. He pointed out the portfolio's alignment with high-growth metropolitan areas that are anticipated to experience a slowdown in new supply in the years ahead.
To manage the assets, KKR will partner with multifamily operators Carter-Haston, MG Properties, and Dalan Real Estate. The investment is being made through capital accounts advised by KKR.
Legal counsel for the transaction included Gibson Dunn & Crutcher LLP for KKR and Troutman Pepper Hamilton Sanders LLP along with Jones Lang LaSalle for Quarterra.
KKR is renowned for its alternative asset management and solutions in capital markets and insurance, aiming to deliver attractive investment returns. The firm manages private equity, credit, and real assets funds and has strategic partners for hedge funds. KKR's insurance subsidiaries, under Global Atlantic Financial Group's management, offer retirement, life, and reinsurance products.
This report is based on a press release statement.
InvestingPro Insights
In light of KKR's recent acquisition of a multifamily property portfolio, the company's financial health and market performance are pivotal for investors tracking the impact of such strategic moves. According to the latest metrics from InvestingPro, KKR boasts a robust market capitalization of $95.2 billion USD, reflecting investor confidence in the firm's market position and its ability to leverage large-scale investments.
The company's Price/Earnings (P/E) ratio stands at 23.1, with a slightly adjusted P/E ratio of 23.59 for the last twelve months as of Q1 2024. This valuation suggests that while KKR's earnings are valued relatively high in the market, investors may anticipate future growth, especially considering the company's significant revenue growth of 323.59% during the same period.
InvestingPro Tips highlight that KKR has raised its dividend for four consecutive years and has maintained dividend payments for 15 consecutive years, which could be a beacon for income-focused investors. Furthermore, the company is seen as a prominent player in the Capital Markets industry, suggesting a stable foundation for future endeavors such as the recent property acquisition.
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