BPG buys US multifamily apartments

The Philadelphia-based private equity real estate firm has picked up 650 multifamily apartment units in Connecticut. The deal follows on its acquisition earlier this year of 11 multifamily properties in the US.

BPG Properties has acquired two multifamily complexes in Connecticut. Financial terms of the deal were not disclosed.

The properties, Northwoods and Chestnut Hill in North Middlesex, were acquired through the firm’s $850 million funds, BPG Investment Partnership VIII and VIIIA, which closed in 2007. The acquisition is the first phase of a three-property multifamily deal, according to the firm. BPG is expected to acquire the third property later this year.

The two properties, totaling 650 apartments, are to be managed by the firm’s multifamily operating unit, Madison Apartment Group. The Northwoods complex comprises 336 units, while Chestnut Hill totals 314 apartment units. The firm is planning to upgrade the buildings and sites.

The latest deal follows on from Philadelphia-based BPG’s acquisition of 11 US multifamily properties, in a deal valued at approximately $260 million. The firm acquired 3,098 apartment units in Seattle, Portland, Oregon; Salt Lake City, Utah; Dallas; and Jacksonville, Florida. The properties were acquired through the firm’s acquisition of US real estate investment trust, Boston Capital, in January this year.

Last year, BPG paid $314 million for 22 apartment complexes in eastern Pennsylvania. The value-add investor targets the office, residential, retail and industrial property sectors in the US and directly operates assets.