Fairfield Capitalizes $1.1B Multifamily Portfolio
Fairfield Residential partnered with Sunroad Enterprises to capitalize a 15-property multifamily portfolio in a $1.1B transaction, according to JLL.
JLL’s Capital Markets group arranged the financing, including $415M from Freddie Mac and $250M from KKR, for the 3,830-unit portfolio throughout six states, it announced in a press release.
The properties, primarily in the Sun Belt, are a mix of garden-style and mid-rise communities with six Class-A assets and nine value-add assets.
San Diego-based Sunroad assembled the portfolio over six years and was searching for alternative exit strategies, Sunroad Asset Management President Dan Feldman said in a statement.
Fairfield’s strong financial backing “enabled liquidity to be created while not divesting of the assets,” Feldman said.
San Diego-based Fairfield closed a U.S. multifamily value-add fund with nearly $1.5B of equity commitments in February, when $385M had already been deployed for 16 assets.
Fairfield was attracted to the high-growth market locations of Sunroad’s portfolio, Fairfield Executive Vice President Wes Dickerson said in a statement. The portfolio has six properties in Arizona, one in Nevada, three in Colorado, two in North Carolina, two in South Carolina and one in Georgia, all with an average vintage of 2011.
“Sunroad has done an excellent job maintaining the portfolio in an institutional manner and has executed a top-of-the-line renovation strategy that we look forward to completing as partners,” Dickerson said in the statement. “Fairfield has been focused on specialized recapitalization opportunities across our various investment vehicles for the past year, and this transaction is representative of that strategy.”
Transactions between Fairfield and Sunroad for five Arizona properties in July totaled $462M, making it the biggest multifamily deal in the state’s history, the Phoenix Business Journal reported.
The Freddie Mac loan is for 10 of the assets and will be serviced by JLL Real Estate Capital.
JLL Capital Markets’ advisory team was led by Aldon Cole, Roberto Casas, Timothy Wright and Bharat Madan. Colton Apartments in Henderson, Nevada, was handled by Mark Wintner.
