Brookfield buys 19 multifamily properties for $414m

The Toronto-based asset manager has purchased 4,892 units in North Carolina, South Carolina and Virginia on behalf of its global real estate opportunity fund.

Brookfield Asset Management has acquired a portfolio of 19 multifamily properties located in three US states for $414 million. According to a statement, the Toronto-based asset manager purchased the portfolio, which has 4,892 units located in North Carolina, South Carolina and Virginia, from Babcock & Brown Residential.

A spokesman for Brookfield confirmed that the purchase was made on behalf of an undisclosed Brookfield fund. Although representatives from the firm declined to specify which commingled vehicle, PERE understands that the acquisition was made on behalf of Brookfield Strategic Real Estate Partners, the firm’s first global real estate opportunity fund.

The majority of the properties are concentrated in the Charlotte and Raleigh-Durham submarkets, with an average occupancy of 92 percent. The portfolio currently is financed with individual non-recourse first mortgage loans, which have been assumed as part of the transaction.

This transaction brings Brookfield’s multifamily portfolio to approximately 20,000 units throughout the US. David Arthur, managing partner at Brookfield Asset Management, said “the acquisition of this portfolio positions us for continued growth in this property sector.”

Brookfield intends to invest an additional $30 million to maximize value in the portfolio by selectively upgrading and repositioning assets to increase rents and return on investment. Fairfield Residential, an affiliate of Brookfield, will manage the properties.