REAL ESTATE INVESTMENT
KKR | May 10, 2022
KKR, a leading global investment firm, announced the expansion of KKR’s industrial real estate investment strategy in the U.S. to include ground-up development of Class A industrial logistics properties. KKR’s wholly owned U.S. industrial real estate platform, Alpha Industrial Properties (AIP), has begun development at four sites and has another four sites in pre-development. KKR has appointed industry veterans Greg Bradley and Matt Singleton as Senior Vice Presidents at AIP responsible for managing the platform’s sourcing, pre-development and development activity.
The eight projects are expected to deliver 1.8 million square feet (SF) of state-of-the-art industrial space serving the Atlanta, Dallas, Denver and Orlando markets. Funding for the projects is being provided by KKR Real Estate Partners Americas III, KKR’s Americas opportunistic equity real estate fund.
The addition of ground-up development capabilities enhance our ability to assemble diversified portfolios of high quality industrial real estate and increase our presence in growth markets where we believe the supply-demand fundamentals remain dynamic. Our extensive experience acquiring approximately $7 billion of industrial real estate in the U.S. over the last four years positions us to identify attractive opportunities and development is a natural extension of our strategy.”
Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States
The development program augments KKR’s strategy of acquiring industrial assets and portfolios in major U.S. markets that are experiencing outsized demand for logistics real estate driven by demographic trends and the proliferation of ecommerce. Across its funds, KKR has committed or acquired approximately $7 billion of U.S. logistics assets since 2018 and currently owns over 45 million SF of industrial real estate.
Square Mile Capital and BMO Harris Bank have provided KKR with a $200 million construction facility to finance its investments in industrial developments nationwide.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.
REAL ESTATE INVESTMENT
Triumph Properties | April 08, 2022
Triumph Properties announced it has closed an $82.5mm total capitalization of a 287-unit multi-family development project, Aileron, located in the booming North Phoenix submarket. The land parcel of 9.87 acres was purchased from Moderne Capital Partners, who will be Triumph's development partner on the deal.
Triumph believes that Aileron's location will benefit from the continued growth of the north Phoenix market including notable job announcements like the Taiwan Semiconductor Manufacturing Company (TSMC), who announced plans to open a 1,129 acre $12 billion factory. Aileron is 1 mile south of the Deer Valley Airport where Cox communications and Honeywell Aerospace have strong employment centers. Other notable nearby employers are Discover, Safeway Corporate and Albertsons.
Aileron will feature a mix of studios, one-, and two-bedroom units averaging 842 square fee. Unit finishes will include vinyl plank and carpet flooring, quartz countertops, tile backsplashes, wood cabinets, stainless steel appliances, in unit laundry, air conditioning and more. Amenities will include, pool, spa, clubhouse, fitness center, BBQ area, secured access and package center.
"We are excited about this project and our partnership with Moderne. Each of Moderne's Partners brings tremendous experience and value to the table. We believe this will be the first of many projects together", said Steve Feder, Principal at Triumph Properties.
We are looking to make more strategic partnerships like we did on Aileron in the Southeast and Southwest as we expand our development pipeline. Suburban, garden-style apartments, surface parked or wrap product are what we are focused on."
Blake Brewer, Director of Acquisitions at Triumph Properties
Triumph Properties is a national full service commercial real estate investment, management, and development firm based out of Southern California. Triumph leverages decades of expertise and an innovative approach to maximize value for residents and investors.
REAL ESTATE INVESTMENT
Heartwood | February 24, 2022
Today, Heartwood Real Estate Group is excited to announce its official launch with several innovative projects totaling more than 1,000 residential units in the Austin, Texas area. Heartwood will develop and build a wide variety of assets, ranging from luxury single-family residences and townhome communities to workforce and affordable apartment communities. Heartwood is dedicated to solving Austin's real estate crisis by providing homes for all residents and strengthening the city's well-loved neighborhoods and communities.
Heartwood's team is led by president and founder Chris Affinito, who brings more than a decade of experience in a variety of real estate and development sectors, including acquisitions, development, structured finance, valuation, and sales. Dan O'Dea, President of Delphi Affordable Housing Group, serves as Heartwood's advisor and as lead investor through his family office, DAHG Capital Partners, LLC. Dan brings over 40 years of experience in affordable housing development, structured finance, and private equity.
Heartwood's initial project, The Reyna, is already under construction. Estimated for completion in 2023, this luxury, boutique townhome community is just a stone's throw from the many funky bars, restaurants, shops and cafes in the vibrant South Congress corridor. Heartwood is also spearheading a new development on Springdale Road in East Austin. Currently in pre-development, this 344-unit mixed-use community will participate in the City of Austin's Affordability Unlocked program, reserving half of its 344 units for families earning 60% or less of the area's median family income (MFI).
Austin home prices rose 30% in 2021, while rents rose by 25%, both of which were among the highest rates in the nation. At Heartwood, we're committed to helping residents face the challenges of this housing crisis through our creative and meticulous approach to real estate development."
Our goal is to make Austin both affordable and beautiful as it grows, with 50% of our developments featuring substantial affordable housing components."
co-founder and Director of Operations Mackenzie McCauley.
Heartwood leverages close relationships with local consultants and partners, as well as in-depth knowledge of Austin's housing market and development process, to tackle complex projects others tend to overlook. Heartwood aims to help Austin solve its affordability crisis by making a substantial contribution to the city's critically insufficient housing supply.
Choice Home Warranty | February 08, 2022
Choice Home Warranty ("Choice") announced today that it has acquired certain assets of Home Warranty of America ("HWA") from Home Warranty of America, Inc. to enhance Choice's position as a leading provider of home warranty service contracts and to accelerate Choice's mission to become the US' largest and most respected home warranty provider. Financial terms of the transaction were not disclosed.
Founded in 1996 and based in Illinois, HWA is recognized as a top national provider of home warranty service contracts to real estate professionals. Choice will continue to operate HWA as a stand-alone brand; but would complement HWA's strong brand and experienced employees with modern and improved customer service utilizing Choice's advanced technology.
HWA's experienced team and strong reputation with real estate professionals combined with Choice's advanced technology, is an excellent fit with Choice's overall growth strategy, The combination of HWA's real estate channel experience with Choice's direct to consumer business and high-tech administration platform will be complimentary and will improve customer service, be great for our partners, and accelerate our path to attaining our goal of become the US' largest and most respected home warranty provider."
Victor Hakim, Chairman, and founder of Choice.
Home Warranty of America has been a trusted and recognizable brand in the home warranty space for more than 25 years, We welcome the team and are excited to bring new technology to improve and grow HWA and Choice."