San Diego, California-based Strata Equity Group has purchased a portfolio of 12 apartment communities from Blackstone with $495m in Freddie Mac financing.
The 12 fixed-rate, securitized loans, secured on behalf of the borrower by HFF, cover 4,635 units that Blackstone had acquired through its Blackstone Real Estate Partners VII fund.
Strata purchased the portfolio in partnership with a private Mexican investor group for more than $650m, according to reports. That puts the loan-to-value at 76%, though Strata has said that a majority of the properties will undergo renovations “to improve both resident amenities and interior unit finishes.”
Built between 1989 and 2012, the assets are located in the cities of Austin and Houston, Texas; Atlanta, Georgia; and Denver, Colorado.
“These acquisitions have expanded Strata’s national presence in line with our long-term investment strategy of delivering attractive risk-adjusted cash yields in strategic growth markets to our investors,” said Carlos Michan, Strata’s CEO and founder. “Over the last five years, Strata has rebuilt its income property portfolio after having divested a majority of its assets during the last upcycle.”
Strata owns and manages more than $1.5bn in real estate assets, comprised of over 7,500 multi-family units, over 375,000 sq ft of commercial space and more than 18,000 acres of land.
The Freddie Mac loan was made through the Federal Home Loan Mortgage Corporation CME Program.