White Oak Partners (White Oak) said that BentallGreenOak (BGO), acting on behalf of its institutional investors, has committed $400 million of equity to form a strategic partnership that, with leverage and equity from White Oak, intends to acquire over $1 billion of multifamily assets.
At closing, the venture recapitalized two multifamily communities owned by White Oak, which will be followed shortly by an additional two communities that are under contract plus future investment opportunities.
”The initial four deals are high-quality, newer-vintage multifamily communities in White Oak’s target markets, generally defined as desirable suburban and infill locations in large secondary U.S. metropolitan statistical areas that have resilient economies and magnetic growth potential,” said BGO in a statement.
“We are very pleased to partner with BGO, one of the global leaders in real estate investment management. We believe the combination of BGO’s diverse and deep capital sources, scale of our multifamily platform, and shared views on managing risk and prioritizing resident satisfaction provide great alignment of interest for this partnership to be successful,” said Mike Menzer, Founder and CEO of White Oak.
“Multifamily housing, especially within White Oak’s target markets, have proven to be a durable, income-producing investment with relative low volatility in the current economic climate. BGO’s objective of growing its multifamily portfolio through the acquisition of high quality assets in markets with strong growth drivers that are well-positioned to outperform in this next economic cycle, is made stronger through partnerships like the one we have established with White Oak,” said Kevin Rivest, Managing Director, Investments for BentallGreenOak.