Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

RREEF Completes $30.9 Million Multifamily Credit Investment

Finance and Investment concept.Money management and Financial chart.Double exposure investment

RREEF Property Trust Inc. (NASDAQ: ZRPTAX; ZRPTIX; ZRPTTX, ZRPTMX, ZRPTUX), a non-traded real estate investment trust sponsored by DWS Group, has acquired a 100% interest in the Class D Certificate and the related interest-only securities of a fixed rate Freddie Mac Multifamily CMBS Securitization known as FREMF 2021-K150 for a total investment of $30.9 million.

K150 comprises a $1.2 billion pool of 52 multifamily commercial mortgages in diverse markets with a weighted average loan-to-value and debt yield of 57.9% and 8.2%, as of October 2022.

As of the closing of the investment, the largest concentrations of the underlying properties were in Florida (14% of the unpaid principal balance), California (15% of the UPB), Texas (12% of the UPB), New Hampshire (10% of the UPB) and Utah (9% of the UPB).

In addition, the underlying properties represent various multifamily subtypes with 73% of the properties being garden-style.

“We continue to remain constructive on the multifamily sector as we believe strong residential market fundamentals in the U.S. will persist as the result of low current vacancy rates, low housing supply and a disciplined construction pipeline,” said Todd Henderson, chairman of the board of RREEF Property Trust and head of real estate, Americas at DWS. “The investment in K150 underscores our ability to invest across the real estate capital stack in order to achieve the REIT’s objectives of providing investors with attractive current income, capital preservation and NAV appreciation.”

RREEF Property Trust invests primarily in income-producing commercial real estate located in the United States, including office, industrial, retail and apartment properties. The REIT also invests in the common and preferred stock of REITs and other real estate companies and debt investments backed principally by real estate.

The company launched its initial public offering in January 2013 and has since launched a series of public follow-on and private offerings that have raised a total of approximately $360.8 million in investor equity as of Sept. 30, 2022.

Click here to visit The DI Wire directory page.