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Strata Equity Picks Up Large MF Portfolio

SAN DIEGO—Strata, a San Diego-based real estate investment firm, has acquired a 12-property multifamily portfolio from Blackstone Real Estate Partners VII. Strata made the deal in partnership with a private Mexican investor group. The seller was advised by Holliday Fenoglio Fowler.

The portfolio is composed of more than 4,600 apartment units located in Atlanta, Austin, Denver and Houston. The acquisition was financed by Strata's internal private investor group and the debt was provided by Freddie Mac via Holliday Fenoglio Fowler (HFF).

"These acquisitions have expanded Strata's national presence in line with our long-term investment strategy of delivering attractive risk-adjusted cash yields in strategic growth markets to our investors," said Carlos Michan, Strata's CEO & founder. "Over the last five years, Strata has rebuilt its income property portfolio after having divested a majority of its assets during the last upcycle. These efforts have complemented Strata's land banking and entitlement division."

All 12 apartment communities are of institutional size and scale, built between the years of 1989 and 2012. A majority of the properties will undergo renovations to improve both resident amenities and interior unit finishes. "The location and vintage of these assets is appealing from an investment and portfolio diversification standpoint," said David Michan, President of Strata Equity. "The improvements will bolster demand and drive our value-added strategy."

Strata was represented by the Procopio, Cory, Hargreaves & Savitch LLP legal team led by Robert Brown.

Strata Equity Group is a family-owned real estate investment and management company founded by Carlos Michan, CEO, and his two brothers. With more than 30 years of operating history, Strata owns and manages over $1.5 billion in real estate assets comprised of over 7,500 multi-family units, over 375,000 square feet of commercial space and over 18,000 acres of land.