Leste Real Estate U.S. Significantly Scales Sunbelt Multifamily Portfolio, Seals $500 Million in Total Transactions in Late 2021 Dealmaking
Leste Real Estate U.S. ("Leste Real Estate"), the real estate investment advisor of global independent alternative investment manager Leste Group, today announced the completion of a robust year of multifamily investment activity amid a volatile economic environment, closing two successful exits of recently developed Class A multifamily projects in Tampa Bay, Florida and Charlotte, North Carolina. The two Class A properties comprised 623 units and were sold for a combined $210 million, generating attractive returns on Leste's investment.
In addition to the successful exits, Leste Real Estate also announced the completion of approximately $300 million in new multifamily investment activity, acquiring over 1,250 units of value-add, institutional quality multifamily properties in the second half of 2021. The properties all benefit from strong in-place cashflow as well as upside potential from value-add renovations and rising rents in rapidly growing cities including Austin Texas, Lauderhill Florida, and Orlando Florida.
The Firm also replenished its multifamily development pipeline, acquiring a 3-acre site in North Miami, during 2021 and is set to acquire a 3-acre site in Coral Gables, Florida in the first quarter of 2022. The new projects will comprise approximately 500 units and over $250 million of total capital to develop Class A, highly-amenitized multifamily and condominium projects, which will energize their surrounding communities while meeting the demands of the greatest growth era in broader Miami's history.
Leste Real Estate, which also invests in single family build-for-rent and the healthcare and industrial sectors, was able to successfully exit its recently completed projects while continuing to deploy capital into well-located, income-generating assets across the nation's vibrant Sunbelt markets.
Among its accomplishments in 2021, Leste Real Estate completed the following deals:
- The acquisition of the Enclave at Lake Ellenor, a 322-unit multi-family property based in Orlando, Florida.
- The acquisition of the Sunny Lake Apartments, a garden-style multifamily apartment community with 405 units located in Lauderhill, Florida.
- The purchase of two Austin, Texas apartment communities comprising 538 units in the attractive Northwest Austin submarket.
- A joint venture and co-development arrangement with MG Developer to build Gables Village, a 48-unit luxury project featuring flats, townhomes and villas at the center of Coral Gables near the storied Biltmore Hotel.
- A joint venture with Flagler Healthcare Investments, resulting in the acquisition of four Long-Term Acute Care Hospital facilities in San Antonio, Texas, Las Vegas, Nevada, Tulsa, Oklahoma, and Sarasota, Florida (total transaction value of $94 million).
- Several other development projects and investment strategies that Leste Real Estate is excited to soon announce, across the multifamily, healthcare and industrial sectors.
"We're thrilled with the performance of our investments and really value the confidence our partners and investors have entrusted with us. We take our role very seriously and the whole team at Leste Real Estate is focused on acquiring good assets in good markets at good locations," said Josh Patinkin, Managing Director of Leste Real Estate. "Sunbelt multifamily is supported by secular tailwinds in U.S. migration trends. Alongside our valued joint venture partners, who are all top experts in what they do, we are working on several additional investments and new projects that we are confident will produce solid value creation for our investors and all of our stakeholders."
About Leste Group
Founded in 2014, Leste Group is a global independent alternative investment manager guided by core values of respect, creativity, and teamwork. The firm offers investors a diverse range of strategies across real estate, credit, venture, liquid markets and other alternative asset classes. Leste Group's investment teams leverage institutional-grade processes, a nimble, entrepreneurial approach, capital markets expertise, and exclusive networks to source unique opportunities and drive consistent risk-adjusted returns.
To learn more information on Leste Group, please visit leste.com
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