The Carlyle Group, one of this country’s largest private
equity groups decided not to follow the same trend as countless others, by
investing in single family homes, instead they invested
in multi-unit buildings.
Currently the Carlyle Group LP, is a
$25 Billion fund, and decided to jump into the distressed real estate game back
in 2008. So far, they have invested in
approximately 50 distressed multi-unit buildings a year. It’s a different strategy than most of the
other hedge funds out there, like Blackstone, which concentrates on single
Robert Stuckey, head of U.S. real-estate investing for
Carlyle said, “Our
posture is there are better ways to play the housing recovery. Our approach enabled us to buy at about 30
percent of replacement cost and we don’t have to mow the lawn.”
recently, the group has invested in a 255 unit townhome complex in Las Vegas,
called Elysian Southern Highlands. The
“west loop” of Chicago is another fresh market for them where they purchased a
45 unit property along with adjacent lots, which will allow for the addition of
100 more units.
such a high demand for rentals the Carlyle Group is finding that many of their
properties are being leased before the completion of the project. In Dallas they pre-leased 20% of 359 unit
property, and in Nashville they pre-leased an incredible 60% of 300 units.
have not completely dismissed the entire single family home strategy. They recognize the opportunity and have
invested $10 Million of their fund in the Atlanta market. “It’s a big investment concept and that’s why
we’re taking it seriously. We’ve got a
toe in the water,” said Stuckey.
Beasley, CEO of Waypoint Homes said, “It’s hard to find a private-equity firm
on the planet that doesn’t have a strategy in this space.”
is also expanding their strategy into another aspect of the market that
seemingly has been neglected for years, the senior living communities. With a larger population of seniors, the
construction of these facilities has not kept up.
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