SINGAPORE — CapitaLand has acquired a multifamily portfolio located throughout the metropolitan areas of Seattle, Portland, Los Angeles and Denver for $835 million. The Singapore-based real estate company acquired the assets through its wholly owned international business unit, CapitaLand International.
The 16-property, Class B portfolio includes 3,787 units, representing a price per unit of approximately $220,000. The acquisition will more than double CapitaLand’s investment in the U.S. to over $1.5 billion, as well as increase its presence in the market to more than 6,500 units.
“The stable, reliable cash flows of these Class B multifamily properties make this suburban portfolio more attractive than the higher-priced urban core segment,” said Gerald Yong, CEO of CapitaLand International. “Situated in well-established, well-connected rental communities, this portfolio of low-rise and garden-style properties continue to be a strong draw for middle-income and skilled professionals working in surrounding employment hubs.”
The portfolio includes five properties located in Seattle, three in Portland, three in the greater Los Angeles area and five in Denver. All of the properties in the portfolio were more than 90 percent occupied at the time of sale, with an average length of stay of two years.
Community amenities across the portfolio include swimming pools, fitness centers, dog parks, playgrounds and clubhouses. In addition, the properties are located near employers such as Boeing, Microsoft, Starbucks, Amazon and Nike.
“While we add value to this portfolio of freehold operating assets through asset enhancement post-acquisition, we will also be looking out for more opportunities to build up a sizeable platform and strengthen our expertise in this asset class,” said Lee Chee Koon, president and group CEO of CapitaLand. “As the portfolio grows, we will have the option to spin off these assets into investment vehicles and partnerships.”
CapitaLand first entered the U.S. market in 2015 and has an office in New York to oversee the group’s investments in the country. The company’s global portfolio totals more than $93 billion as of June 30, and includes shopping malls, multifamily properties, offices, REITs and funds.
— Camren Skelton