RREAF Holdings LLC, alongside DLP Capital and 3650 REIT, have closed on the final communities as part of a 21-property portfolio acquisition.
Kip Sowden, CEO of RREAF, told Multi-Housing News that the three partnering firms acquired the portfolio for a total of $534 million from Carter Funds, Southwest Resources and Seuba USA Corp. The partnership acquired the portfolio in a three-phase transaction, with the acquisition of the first tranche of 13 communities in September.
Sowden told MHN that the September acquisitions were followed by October’s acquisition of the second tranche that included three communities in Arkansas and three in Houston. The acquisition of the final tranche in November includes two communities, one in Florida and one in North Carolina, Sowden told MHN. The entire 21-community portfolio totals more than 4,000 units in Mississippi, Alabama, Florida, Texas, Arkansas, Louisiana, Georgia and North Carolina with vintages that range from the 1960s to new construction.
Sowden told MHN that RREAF will implement unit renovations and improvements to the common areas and amenities, with specific renovation plans for each property. In general, RREAF’s renovation strategy includes upgrading the units by installing new floors, appliances and fresh paint alongside upgrades to the common area amenities, Sowden told MHN. RREAF’s in-house property management company, RREAF Residential, was also put in charge of 16 of the 21 communities, while DLP Real Estate Management will manage the other five.
BUILDING UP A SUN BELT PORTFOLIO
Sowden also said in prepared remarks that the closing of the 21-property portfolio increases RREAF’s affordable housing portfolio to more than 50 communities. The portfolio totals more than 14,000 units throughout the Sun Belt region of the U.S. including Texas, Arkansas, Alabama, Florida, Mississippi, South Carolina, Tennessee and Georgia.
Prior to the TransCoastal 21 portfolio acquisition, RREAF had been busy within the multifamily sector in recent months. The firm has acquired more than 7,400 units since the start of the COVID-19 pandemic, including a 12-property portfolio that closed in December and totaled 3,662 units.