Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Tuesday, 09 July 2019

KKR Venture Paying $325Mln for 6 Apartment Properties in Fla., North Carolina, Texas

The venture, which includes Carter-Haston Real Estate Services, is paying $325 million for the 1,823-unit apartment portfolio. Bluerock Residential Growth REIT Inc. is selling the portfolio. Two of the properties serve as collateral for $69 million of Freddie Mac securitized debt.

Commercial Real Estate Direct Staff Report

A venture of KKR & Co Inc. and Carter-Haston Real Estate Services has agreed to pay $325 million for six apartment properties with 1,823 units in Florida, North Carolina and Texas.

It is buying the portfolio from Bluerock Residential Growth REIT Inc. of New York.

KKR formed its venture with Carter-Haston last year to acquire apartment properties throughout the United States. KKR, which has $7.7 billion of assets under management, in 2013 raised more than $1.5 billion for its inaugural real estate fund, KKR Real Estate Partners Americas, and two years later raised $2 billion for its follow-up vehicle. The New York private-equity firm also operates a mortgage REIT, KKR Real Estate Finance Trust Inc., that during the first quarter was the most-active retainer of risk in the CMBS market.

Carter-Haston, meanwhile, is a Nashville, Tenn., investment manager that owns or manages 45 apartment properties in 10 states.

Two of the properties that the KKR/Carter-Haston venture is buying serve as collateral for $69 million of Freddie Mac securitized debt. One of those properties is the 352-unit Sorrel Phillips Creek Ranch in the Dallas suburb of Frisco, Texas, which the venture is buying for $57.9 million, or $164,500/unit. The property, at 5050 FM 423, serves as collateral for $38.7 million of debt that is securitized...





weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
warehouse-backstage