Brookfield Asset Management Inc. (NYSE: BAM) has acquired a portfolio of 19 apartment communities with 4,892 units in NC, SC and VA for $414 million. The seller was Babcock & Brown Residential.
The portfolio is concentrated in the Charlotte and Raleigh-Durham sub-markets. Average occupancy is 92 percent.
Fairfield Residential, an affiliate of Brookfield, has an existing geographic footprint in these same markets and will manage the assets in the portfolio.
Brookfield intends to invest an additional $30 million to maximize value in the portfolio by selectively upgrading and repositioning assets. This transaction will bring Brookfield’s growing multifamily portfolio to approximately 20,000 units throughout the United States.
The portfolio is currently financed with individual non-recourse first mortgage loans which have been assumed as part of the transaction.
Babcock & Brown was advised by Robert W. Baird & Co.