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Vancouver-based QuadReal Property Group has announced a partnership with Mill Creek Residential to develop and operate up to $590 million (all figures Cdn) worth of multifamily communities in targeted U.S. markets.
The announcement, made Friday afternoon, includes the acquisition of the venture’s first development land. QuadReal and Mill Creek have bought property in The Woodlands, Texas, to construct a class-A community with 429 apartment units. The proposed development will be known as Modera Six Pines.
“We are pleased to form this new relationship with Mill Creek, a first-rate developer and operator of multifamily communities, with whom we are keen to grow our portfolio of class-A apartment properties throughout the U.S.,” said Tim Works, managing director, Americas for QuadReal in a release.
“Mill Creek and QuadReal share a deep conviction in the asset class and a commitment to building and operating high-quality communities.”
QuadReal seeking international real estate
QuadReal and Mill Creek are planning to make the investments during the next two to three years.
“QuadReal is a well-respected firm with a depth of experience in the multifamily sector,” said William C. MacDonald, chief executive officer, president and chief investment officer for Mill Creek, in the release. “We are looking forward to working with this world-class organization to grow our portfolio of high-quality, award-winning communities in some of the most desirable markets in the country.
“This venture serves as an important step in further developing our investment management business.”
The partnership follows on a strategy laid out by QuadReal in its 2019 annual report. At the time, the company noted its global assets accounted for 28 per cent of the portfolio, compared to 24 per cent a year earlier.
QuadReal seeks domestic/global balance
It projected a continued focus on international investments to bring the ratio closer to a 50/50 balance between domestic and global allocations.
QuadReal manages the real estate and mortgage programs of British Columbia Investment Management Corporation (BCI), one of Canada’s largest asset managers with a $153.4 billion portfolio. QuadReal’s portfolio includes $37.6 billion in property, spanning 23 cities across 17 countries.
Mill Creek Residential Trust LLC has raised over $15 billion in capital since 2011 and has over $9.8 billion in current capitalization including four separately managed accounts and various joint ventures.
It has a development pipeline valued at approximately $8 billion.
The national multifamily company, headquartered in Boca Raton, Fla., develops, acquires, constructs and operates multifamily communities through its seasoned team of real estate professionals in 16 offices across the United States.
As of Dec. 31, 2019, Mill Creek’s portfolio was comprised of 80 communities representing over 21,300 apartment homes operating and/or under construction.
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