Black Creek Diversified Property Fund, a perpetual-life, non-traded monthly NAV REIT, has purchased two multifamily properties, The Daley at Shady Grove Metro and Broadstone Winter Park.
The Daley at Shady Grove Metro is a 333-unit property in Rockville, Maryland that was 95 percent leased at the time of closing. Although neither purchase price was disclosed, the company notified the SEC in a quarterly filing that it intended to pay approximately $93.5 million for the property.
The second property, Broadstone Winter Park, is a 268-unit property in Winter Park, Florida that was 85 percent leased at the time of closing.
The acquisition of the properties comes shortly after the firm completed the sale of 655 Montgomery St., a 263,000-square-foot office building in San Francisco, for $191.5 million; and Rialto, a 155,000-square-foot office project in Austin, Texas for approximately $46.9 million.
Black Creek Diversified Property Fund has had an active start to 2019, with more than $450 million of acquisition and disposition activity. Since the beginning of the year, it has increased its industrial holdings with the acquisition of a 245,000 square foot asset in San Antonio, and a 218,000 square foot asset in Greater Cincinnati.
“Historically commercial real estate has been one of the strongest performing asset classes, yet many individual investors did not have access to it and as such are under-allocated,” said Raj Dhanda, Black Creek Group’s chief executive officer. “Now the asset class is becoming more accessible with investor friendly-structures and greater transparency which means we can only expect to see investors seek to increase their allocations – driving capital which in turn will support an already strong market.”
Black Creek Diversified Property Fund, based in Denver, Colorado, invests in a portfolio of commercial real estate assets. The company’s original offering was declared effective in January 2006 and has raised more than $2.7 billion in investor equity through multiple follow-on offerings, as of the third quarter of 2018. The company owns 49 properties with an investment cost of more than $2 billion.