New GFI-Carlyle JV Seeks $1.2B in Acquisitions

GFI Capital Resources Group has formed a joint venture with the Carlyle Group to acquire real estate assets throughout the United States. The partnership will provide GFI with $1.2 billion in buying power, leveraging a total of $300 million worth of equity. According to GFI, the JV will allow it to more than double the size of its existing portfolio, which totals about 20,000 multi-family units, representing 100 properties in five states. The company will be seeking distressed and other non-performing assets (such as real estate debt) as opportunistic plays. New York-based GFI has already made a number of recent acquisitions in the multi-family sector, including three properties totaling 994 residential units (the “East/West portfolio”) for $26.6 million; the 224-unit Willow Trail apartment homes for $11.6 million; and the 722-unit Village at Stone Mountain, all in the Atlanta metro area. GFI has also purchased three non-performing loans on condo projects in various stages of development in Brooklyn. The Carlyle Group’s real estate arm also has a history of opportunistic investment in the United States and other places, typically seeking properties for two- to four- year holding periods. The parent Carlyle Group is a Washington, D.C.-based global private equity firm with $89.3 billion of assets under management in 64 funds.