Crow Holdings Capital Closes M-F Portfolio Sale

Crow Holdings Capital Partners continues making moves, this week announcing it has sold a 12-property Class A multi-family portfolio with 4,426 luxury units.
Dodge Carter

Dodge Carter, Crow Holdings

Crow Holdings Capital Partners, a Dallas-based investment firm and global asset fund manager, continues making moves, this week announcing it has sold a 12-property Class A multi-family portfolio with 4,426 luxury units.

Financial details were not released but Dodge Carter, director of multi-family investments for the firm, said the properties were located in Texas, Colorado, Oregon, Georgia and Tennessee and were sold to three institutional buyers. He told Commercial Property Executive the assets were owned an average of four years with some owned as little as two years.

The sale was jointly brokered by ARA and HFF L.P.

“Our broad network of real estate relationships continuously source and deliver attractive opportunities,” he said in a news release. “The successful sale of this portfolio further reaffirms our value creation strategy focused on high-amenity properties in high-growth markets with strong income streams.”

Carter described the company’s funds as “active sellers” and said they are always monitoring the market for opportunities to sell individual assets or portfolios.

“We are currently marketing multi-family assets for sale in Missouri and Texas,” he told CPE. “We are evaluating other sale opportunities in additional markets and anticipate decisions shortly.”

Carter said the latest fund, Crow Holdings Realty Partners Fund VI, L.P., is in its investment period and actively looking for acquisitions. He said the fund had recently invested in a multi-family property in Dallas, but did not disclose further details about that purchase.

Last month, Fund VI acquired the Brown Palace hotel portfolio in Denver. The transaction included the historic Brown Palace Hotel & Spa and an adjacent Comfort Inn Downtown Denver for a total of 472 guest rooms and more than 22,000 square feet of meeting space and food and beverage venues. The sales price was not released.

Crow Holdings Capital Partners closed Fund VI in August with $1.07 billion to invest. Initially expected to be $750 million, it grew past $1 billion making it the firm’s largest fund to date. As of mid-October, the fund had made at least 15 investments including in seven multi-family properties. It had also focused on industrial, medical office and retail assets.

Since 1998, the firm’s private equity funds have invested in 73 multi-family properties comprising more than 24,000 units and representing nearly $3.2 billion in assets as of Dec. 31. Crow Holdings Capital and its affiliates have also acquired or developed more than 43 million square feet of industrial, more than 11 million square feet of retail, more than 8 million square feet of office, 360 convenience and gas stores, more than 7,500 hotel rooms and almost 6,000 acres of lot development for a total of more than $12 billion in assets.

“Our many years of experience investing through real estate cycles and strong alignment with our partners guide our cautious – but opportunistic – approach to acquisition and exit strategies for our portfolios,” Anne Raymond, president of Crow Holdings Capital, said in the news release. “Our success over the years derives from our real estate professionals’ fundamental approach to, and deep understanding of, real estate value creation across various asset classes, including industrial, retail, office, multi-family, convenience and gas stores, hotel, and medical office buildings.”

When investing in multi-family assets, Carter told CPE the funds focus on acquisition with a value add component and new development. He added that acquisition opportunities usually focus on Class A/B+ assets in primary and major secondary markets in the United States.

“Generally, multi-family sales activity has increased industry-wide as investment capital, both domestic and foreign, and lender appetites continue to pursue multi-family assets,” he said.