Big Money Continues to Buy Up Housing (Patreon)

$KKR buys 5,200 apartments to jack up rents on wage earners across the country: The investment firm acquired a portfolio of 18 multifamily real estate assets on Tuesday from a closed end fund sponsored by developer Quarterra Multifamily for about $2.1 billion.

KKR Makes its Biggest Foray into Apartments, Betting on Rising Rents (WSJ) KKR just completed its largest-ever purchase of apartment buildings, sending a strong signal that most prominent investment firms are betting on the rebound of multifamily.

KKR’s deal for 18 new mid- and high-rise buildings across the country is worth $2.1 billion and includes more than 5,200 apartments.

This is a bold move in an economy in which developers sit on empty lots, and rent growth for new leases has been flat for more than a year. “Apartment-building prices were down more than 20% in May from their July 2022 peak, according to data firm MSCI Real Assets. Sales of buildings were 44% lower than year-ago levels in May.”

Investors are swooping up distressed apartment building sales as more landlords miss payments in the face of increasing debt costs on variable-rate loans.