Lone Star Funds, a Dallas-based private equity firm decided to market and sell a series of multifamily portfolios located in Maryland, Virginia, Pennsylvania and Washington, D.C. metro area for a total of $2.66 billion and consisting of 34 properties and 14, 651 units total. Lone Star selected the CBRE team of Bill Roohan, Mike Muldowney, Brian Margerum and Bob Dean to market and sell a series of multifamily portfolios and finance the transactions. The assets were structured into four separate portfolios all closing by May 29, 2019.
This was one of the largest multifamily portfolio transactions on the East Coast in 2019. CBRE quickly devised a strategy to market the assets and bring them to a successful close within a short timeframe for such a large portfolio series. Each portfolio was carefully assembled and offered investors attractive diversification within one of the most compelling areas for real estate investing in today’s market: suburban class B multifamily. Emphasizing the well-maintained nature of the properties, all located within high barrier to entry markets, the CBRE team highlighted additional investor benefits, such as resilient cash flow and repositioning upside. All four portfolios secured offers and were closed within a tight timeline. The four buyers included Morgan Properties, One Wall Partners, Kushner Cos., Star Real Estate Venturest. The deal reflects one of the hottest investment areas in the market right now – suburban B-class properties are a sector well positioned for the future and many institutional holders are beginning to sell large portfolios to a new crop of investors ready to make a long-term play.