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 TECHNOLOGY
United Real Estate | June 08, 2022
United® Real Estate has announced the launch of its Specialty Properties Group (SPG) websites. Lifestyle.UnitedRealEstate.com is a collection of websites featuring AI and machine learning designed to enhance proprietary SEO algorithms for United's lead acquisition program. The technology-first strategy is converting more buyer and seller leads while significantly reducing the company's acquisition and transaction costs.
Together, the SPG collection is producing organic website traffic and business leads for United's Agent-centered inbound lead program, powered by 2.1+ million listings. The collection includes:
Condominium property types
The specialty websites are streamlining the customer experience and substantially lowering the cost of lead acquisition for United's brokers and agents. United's proprietary Bullseye™ Cloud-Based Productivity Platform is fully integrated with the SPG website collection. The platform connects interested buyers and sellers to United's customer care team and national agent and broker network.
The system is deploying market-ready buyers and sellers to United's tech-enabled agent base – at a substantially lower cost than traditional lead acquisition programs. As a result, United is driving more profitability for agents and brokers.
The real estate internet space is filled with systems that get between agents and their customers. Our proprietary system connects agents with their past, present and future real estate clients and is designed to substantially lower costs to brokers and agents, improve effectiveness and deliver tremendous business opportunities to our broker and agent network across the country."
Rick Haase, President of United Real Estate
"Our proprietary technology platform, Bullseye, continues to evolve rapidly. These new organic websites are another piece of our end-to-end strategy of lead acquisition for our agents. By leveraging our cloud architecture and our exclusive listing warehouse, we are able to deploy our unique organic SEO strategies rapidly. Our lead program is now delivering more opportunities for earnings to our agents nationwide – at a fraction of the cost of traditional lead acquisition programs. We continue to invest heavily in our technology platform to enhance our value proposition for our agents," says David Dickey, Chief Technology Officer of United Real Estate Group.
United's tech-enabled business services model is gaining attention inside and outside the real estate industry. In 2021, D.A. Davidson named United a top 100 U.S. private technology company. The Herd highlights a diverse group of businesses across cloud, collaboration, fintech, human capital management, infrastructure, sales and marketing, security and vertical software. In 2022, Housing Wire recognized United Real Estate as one of the Top 100 technology companies in real estate.
About United Real Estate
United Real Estate (United) – a division of United Real Estate Group – was founded with the purpose of offering solutions to real estate brokers and agents in the rapidly changing real estate brokerage industry. United provides the latest training, marketing and technology tools to agents and brokers under a flat-fee, transaction-based agent commission model. By leveraging the company's proprietary cloud-based Bullseye™ Agent & Broker Productivity Platform, United delivers a more profitable outcome for agents and brokers. United Real Estate operates in 31 states with 110 offices and more than 16,500 agents. The company produced over $21.5 billion in sales volume in 2021.
About United Real Estate Group
United Real Estate Group (UREG) operates United Real Estate and United Country Real Estate, addressing the unique market needs of suburban, major metropolitan urban and rural markets. Utilizing the cloud-based Bullseye™ Agent & Broker Productivity Platform, UREG offers the latest training, marketing and technology tools producing a significant competitive advantage. The platform realizes a decade-long investment in virtual agent and brokerage technology services and is powered by a 2.1 million listings data warehouse generating over 3 million monthly visitors and 30,000 leads per year. Together, the United Real Estate Group supports more than 600 offices and 20,000 real estate and auction professionals across four continents. United Real Estate Group produced over $27.1 billion in 2021. Through its in-house advertising agency, UREG offers differentiating marketing support and collateral for specialized lifestyle property websites as well as access to a 650,000+ opt-in buyer database.
REAL ESTATE INVESTMENT
5T CRE | February 22, 2022
5 Talents Commercial Real Estate (5TCRE), along with Totem Capital Group, would like to announce the closing of their latest development project, Aria Apartments.
The complex is located on the Northeast side of San Antonio and features 170 apartment units. It is currently 99% occupied and conveniently located near major highways, industrial and large corporate workplaces, and is situated in a vibrant and growing community.
The investment team, led by 5TRCE, has over 24 years of experience in commercial and residential real estate. They identify, acquire, rehabilitate, and improve multifamily real estate properties, bringing quality housing options to residents across South Texas. The Aria Apartments renovation project will add value for residents as the community is remodeled. The development was built in 1982, and the project presented a huge opportunity to improve the community for current and future residents, and it offered an opportunity for investors to receive an equitable return on their investment dollars.
Most of the $750,000 budget will focus on interior upgrades and renovations, along with the repair and repainting of all exterior building surfaces. Plans also include renovating the leasing office and updating the workout facility. Landscaping, tree trimming, and fencing upgrades will also be included.
This project will offer current and future residents beautiful apartment living options in an area that continues to grow, and we are eager to attract new investment partners who share our vision."
Abel Pacheco, Principal and President of 5TCRE
We help investors, who align with our vision of community improvement and philanthropy, increase their net-worth and cashflow, while reducing their taxable income."
Ruben Dominguez, Principal of Totem Capital Group, is the main investment partner with 5TCRE.
To date, the group has invested in real estate projects valued at over $80 million, enhancing nearly 1,000 apartment units. The team offers many different investment opportunities that can be tailored to fit into any investor's portfolio.
REAL ESTATE INVESTMENT
Bluerock Residential | December 21, 2021
Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) (the "Company") today announced that it has entered into a definitive agreement with affiliates of Blackstone Real Estate ("Blackstone") under which Blackstone will acquire all outstanding shares of common stock of BRG for $24.25 per share in an all-cash transaction valued at $3.6 billion (the "Acquisition").
Under the terms of the agreement, Blackstone will acquire 30 multifamily properties comprising approximately 11,000 units as well as a loan book secured by 24 multifamily assets. The properties consist of high-quality garden-style assets with significant green space and resort-style amenities, built, on average, in 2000. The majority of the properties are located in Atlanta, Phoenix, Orlando, Denver and Austin.
Prior to the Acquisition, the Company separately intends to spin off its single-family rental business to its shareholders (the "Spin-Off" and together with the Acquisition, the "Transaction") through the taxable distribution to shareholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust, Inc. ("BHOM"), which will be externally managed by an affiliate of Bluerock Real Estate. BHOM will own interests in approximately 3,400 homes, including 2,000 through preferred/mezzanine investments, located in fast growing, high quality of life and knowledge economy markets across the United States. The Company's shareholders will receive shares of BHOM, with a current implied Net Asset Value estimated at $5.60 (based on the midpoint of the valuation range provided by Duff & Phelps, independent financial advisor to the Company's board of directors), for each share of Company common stock. There can be no assurance that the trading price upon a listing of BHOM will be equal to or greater than this estimated NAV.
The Transaction has been unanimously approved by the Company's board of directors and the Acquisition, excluding the value of BHOM, represents a premium of approximately 124% over the unaffected closing stock price on September 15, 2021, the date prior to a media article reporting that the Company was exploring strategic options including a sale.
We are very proud to enter into a transaction that delivers tremendous value to our shareholders. We believe the substantial premium to our historic trading price is a testament to our success in building a best-in-class institutional-quality multifamily apartment portfolio in our attractive knowledge-economy target markets, along with the robust process run by the board of directors and management to secure maximum value for our shareholders,"
Ramin Kamfar, Company Chairman and CEO.
Bluerock's portfolio consists of high-quality multifamily properties in markets across the U.S. experiencing some of the strongest fundamentals. We look forward to bringing our best-in-class management to these properties to ensure they continue to be operated at the highest standards for the benefit of tenants and the surrounding communities."
Asim Hamid, Senior Managing Director at Blackstone Real Estate
Completion of the Acquisition, which is currently expected to occur in the second quarter of 2022, is contingent upon consummation of the Spin-Off, as well as customary closing conditions, including the approval of the Company's shareholders, who will vote on the transaction at a special meeting on a date to be announced. The Acquisition is not contingent on receipt of financing by Blackstone.
Most members of the Company's senior management, along with certain entities related to them, have agreed to retain their interests in the Company's operating partnership, which will hold the assets related to the single-family rental business upon completion of the Spin-Off, rather than receiving cash consideration.
Morgan Stanley & Co. LLC and Eastdil Secured LLC are the Company's lead financial advisors with BofA Securities also serving as an advisor. Wachtell, Lipton, Rosen & Katz, Kaplan Voekler Cunningham & Frank, PLC, and Vinson & Elkins, LLP are serving as the Company's legal counsel. Barclays and Wells Fargo Securities LLC are Blackstone's financial advisors and Simpson Thacher & Bartlett LLP is Blackstone's legal advisor.
About Bluerock Residential Growth REIT, Inc.
Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and to operations. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone's real estate business was founded in 1991 and has $230 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, multifamily and single-family housing, office, hospitality and retail. Our opportunistic funds seek to acquire undermanaged, well-located assets across the world. Blackstone's Core+ strategy comprises open-ended funds that invest in substantially stabilized real estate assets globally and Blackstone Real Estate Income Trust, Inc. (BREIT), a non-listed REIT that invests in U.S. income-generating assets. Blackstone Real Estate also operates one of the leading global real estate debt businesses, providing comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).