Homebuilder Lennar’s multifamily arm is looking to sell a 3,746-unit portfolio spanning thousands of miles across the United States, the latest dramatic step by Quarterra to reshape its portfolio.
Quarterra has hired JLL brokers to sell the 10-property bundle of apartment properties to one or more buyers, according to a JLL brochure.
The move comes just months after Lennar announced it was selling a majority stake in Quarterra to alternative asset manager TPG, which said it was making a $1 billion commitment with plans to raise additional funds for growth.
Miami-based Lennar kept a minority ownership stake in the deal to offload a unit that has been a drag on Lennar’s overall earnings in recent years.
The deal is expected to help fund thousands of units in Quarterra’s development pipeline.
But the JLL materials appear to indicate that Quarterra, even with new backing, plans to continue selling off existing properties.
Quarterra sold off a portfolio of more than 5,200 units to KKR for $2.1 billion in 2024, and the company also has been selling single properties.
Last month, it sold a 212-unit building in Elmhurst, Illinois, to the State Teachers Retirement System of Ohio for $84.5 million.
The newly offered portfolio includes two properties each in California and Texas.
Quarterra will consider offers for single buildings, part of the portfolio or all 10 properties, according to the JLL brochure.
Charlotte, North Carolina-based Quarterra did not respond to a request for comment from CoStar News.
The mid-rise and high-rise buildings are about four years old on average, and they are expected to sell for less than they would cost to build today, according to JLL.
The largest properties by unit count are The Emery, 4510 Hubbart St. in Emeryville, California, 500 units; The Mitchell, 131 Mamaroneck Ave., White Plains, New York, 434 units; The Smyth, 100 Tresser Blvd. in Stamford, Connecticut, 414 units, and Bowen River Oaks, 2020 Westcreek Lane, Houston, 403 units.
The other properties are:
- Halcyon House, 585 Anton Blvd., Costa Mesa, California, 393 units.
- Citizen West 10, 140 W. 10th Ave., Denver, 393 units.
- The Avenir, 1109 N. Interstate 35, Austin, Texas, 387 units.
- Odin, 401 First Ave. NE, Minneapolis, 335 units.
- Triangle Square, 2201 N. Elston Ave., Chicago, 298 units.
- Artem, 90 NW 29th St., Miami, 189 units.
For the record
The portfolio sale is being led by JLL brokers Roberto Casas, Steven Binswanger, Denise Fansler, Blake A. Rogers, Matthew Lawton and Mark Gibson. The JLL team also includes brokers in each market within the portfolio.