Positive signs in US residential as average transaction value crosses $100mn for the first time
The $2.1bn portfolio comprises 18 multi-family real estate assets, totaling 5,200 units. The properties are located across California, Washington, Florida, Texas, Georgia, North Carolina, Colorado and New Jersey
The multi-family portfolio purchase is KKR’s second over $1bn in 2024, and is the fourth largest real estate transaction so far this year
KKR’s opportunistic real estate operations reported a 2% gross depreciation for 2023
Deal backs up prediction in February by Matt Salem, Partner, Head of Real Estate Credit, that ‘We expect 2024 to be a year of transactions, creating more opportunities for well-capitalized lenders to finance deals.’
June 26 (Preqin News) – The number of residential real estate deals in the US slumped to just 876 in 2023, down from 2,024 the previous year. Apart from the challenging Covid year of 2020, between 2,000 and 3,000 residential deals have been completed in the US every year since 2015. Deal value also fell from $92.2bn in 2022 to $32.1bn last year.
However, there are signs of increased activity this year, with 330 US residential deals recorded so far by Preqin. Average transaction size stands at $126.0bn for 2024 YTD, more than double the $61.1bn of 2023 and the first time it has ever been over $100mn.
Number and value of US residential deals, 2014-2024
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