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- KKR (NYSE:KKR) has acquired more than 5,200 apartment units across the U.S. for $2.1B in its biggest purchase of apartment buildings ever, according to a media report. The transaction indicates that KKR is confident that the sector will rebound after a building boom weighed on rent growth in the past year.
- The private equity firm bought the portfolio from Quarterra, the apartment development unit of homebuilder Lennar (NYSE:LEN) in a deal that closed on Tuesday, the Wall Street Journal reported, citing KKR for the news.
- The increase in supply of multifamily housing has pulled down prices for the properties. Apartment building prices fell more than 20% in May from their July 2022 peak, the WSJ said, citing data from MSCI Real Assets. Similarly, sales of buildings in May dropped 44% from a year earlier.
- KKR (KKR) and Lennar (LEN) didn’t immediately respond to requests for comment from Seeking Alpha.
- KKR (KKR) stock slipped 0.5%, and Lennar (LEN) stock fell 1.2% in late trading Tuesday afternoon.