Two months after selling 5,200 units to New York City-based global investment firm KKR, Irving, Texas-based developer Quarterra Multifamily, a subsidiary of home building giant Lennar, is jettisoning another 1,400 apartments to QuadReal Property Group.

QuadReal, a Vancouver, British Columbia-based global real estate investment, operating and development company, owns 62,000 units globally and just over 14,000 apartments in the U.S. Overall, it has $77.6 billion under management. It partnered with Quarterra on previous developments, including the four properties it recently acquired.

“The living sector is a key area of conviction for QuadReal, and we are focused on building a best-in-class living portfolio in the U.S. and around the world,” Daniel Gliksman, managing director, Americas-East at QuadReal, told Multifamily Dive.

The four properties include:

• The 343-unit Beacon85, located in Denver’s Lakewood North area.
• The 432-unit Bradham in Charlotte, North Carolina’s South End.
• The 293-unit Maris, located in Maryland’s Annapolis Town Center, which is equidistant to Washington, D.C., and Baltimore.
• The 399-unit Nexa in Tempe, Arizona, which is near Arizona State University. 

QuadReal plans to oversee operations, leasing and capital investment. However, property management services will be outsourced to a third-party provider, according to a press release. 

The four properties check a number of boxes for QuadReal, including being located in dense employment areas.

“Beacon85, Bradham, Maris and Nexa are all located in key U.S. submarkets and offer residents both exceptional building amenities and easy access to the surrounding communities,” Gliksman said. “When expanding our portfolio, we look for assets located in well-positioned areas with access to public transit and walkable retail amenities.”

Quarterra’s motivation

In July 2022, Miami-based home builder Lennar rebranded its vertically integrated multifamily apartment builder, developer and asset manager LMC as Quarterra Multifamily. At the time, Lennar said it would spin off the business later that year.

The rebranding was the first step in positioning Quarterra as an independent, New York Stock Exchange–listed alternative asset manager, president Todd Farrell said in a 2022 press release.

But then, in its 2022 fourth-quarter conference call, the company announced that it had halted plans to spin off Quarterra due to unfavorable market conditions.

”We believe that we have a very high-end public company waiting and almost ready to enter the public arena,” Miller said on that earnings call. “But we’re going to postpone for the time being and wait for the right timing.”

On Lennar Corp.’s December 2023 earnings call, executive chairman and co-CEO Stuart Miller said the firm was exploring the sale of its roughly 11,000-unit apartment portfolio. At the time, Bloomberg Law reported that the company was open to splitting up the portfolio, which could be worth as much as $4.5 billion, into smaller pools. Lennar plans to sell additional buildings, according to The Wall Street Journal.

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