Oaktree Real Estate Income Trust Inc., a publicly registered non-traded REIT sponsored by global alternative investment manager Oaktree Capital Management L.P., broke escrow with approximately $150 million in proceeds for its $2 billion offering.
An affiliate, Oaktree Fund GP I L.P., purchased approximately $87 million in Class I shares, the company noted in a filing with the Securities and Exchange Commission.
In addition to breaking escrow, Oaktree REIT formed a joint venture with Holland Partner Group to purchase Sofi Westminster, a multifamily property located in Westminster, Colorado for $81.2 million, excluding closing costs.
The property was funded through a combination of $53.04 million of property-level debt from Freddie Mac, $26.22 million paid by Oaktree REIT, and $2.91 million by Holland.
Built in 1985, Sofi Westminster is a 332-unit multifamily property with a mix of one- and two-bedroom homes with floorplans averaging 754 square feet. The company plans to upgrade unit interiors in addition to renovating the exterior and common amenities.
The property is located in the Westminster submarket within Denver’s Northwest Corridor which is home to 26 business parks with 12 million square feet of office space and roughly 300,000 jobs.
The area has one of the highest concentrations of technology employment in the nation with several major technology employers within a 10-minute drive of the property, the company said.
Oaktree Real Estate Income Trust plans to invest primarily in “high quality” commercial real estate assets located across the top 50 markets in the United States. As of September 30, 2019, the company’s investments included two properties totaling $145.9 million, and $50 million in real estate-related loans secured by real estate assets
Oaktree, the REIT’s sponsor, is an investment manager specializing in alternative investments and has $122 billion in assets under management as of September 30, 2019.