Urban multifamily is where it’s at: Brookfield

Office giant sees opportunities in rental markets in big cities

New York /
Nov.November 05, 2015 02:25 PM

Amid demographic shifts and a drop in homeownership, Brookfield Property Partners is the latest real estate giant to double down on urban multifamily properties.

“We think expanding what we’ve been doing in multifamily to urban areas is a really smart thing to do,” a company executive said on an earnings call Thursday. Population growth in cities, declining homeownership and comparatively low capital expenditures all make rental housing an attractive investment, the executive added.




Behind the story:
Brookfield Property Partners

Last week, the Toronto-based real estate investment trust bought a portion of the Greenpoint Landing project from Tower Group and will co-develop two rental towers with nearly 800 units at a total cost of $630M. Last year, the firm went into contract for a 3,962-unit Putnam rental portfolio in Upper Manhattan for $1 billion. Brookfield also has several mixed-use towers in the works at Manhattan West, an $8.6 billion mixed-use redevelopment in partnership with the Qatar Investment Authority.

In total, Brookfield has 3,100 residential units in development across several countries. Its total assets now stand at $65 billion. Its funds from operations (FFO) – a measure of earnings that includes depreciation and amortization – grew to $218 million from $198 million in the last quarter.

Other major investors upping their bets on urban rental housing include the Blackstone Group, which is buying Stuyvesant Town-Peter Cooper Village for $5.3 billion and earlier this year dished out $700 million for the Caiola family’s Manhattan rental portfolio.


Related Articles

arrow_forward_ios
Brookfield Real Estate CEO Brian Kingston and Brookfield Asset Management Bruce Flatt (Brookfield)
Brookfield taking pandemic-hit real estate arm private
Brookfield taking pandemic-hit real estate arm private
Crystal Mall in Waterford, CT; Prizm Outlets in Primm, Nevada; and Louis Joliet Mall in Louis Joliet, Illinois (Facebook, Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
Rock-bottom prices: 11 malls whose valuations have tanked
Rock-bottom prices: 11 malls whose valuations have tanked
Brookfield’s Bankside rendering and CEO Brian Kingston (Brookfield, ArX Solutions)
Brookfield’s $190M loan for Bankside tops February outer-borough list
Brookfield’s $190M loan for Bankside tops February outer-borough list
Many of the lower-tier malls that will be sold will likely be redeveloped into something else. (Getty)
U.S. mall values fall 60% after appraisals
U.S. mall values fall 60% after appraisals
Brian Kingston of Brookfield Property Partners (left) and Bruce Flatt of Brookfield Asset Management
Brookfield’s internal affairs
Brookfield’s internal affairs
Brookfield Property Partners' Brian Kingston and Brookfield Place (Brookfield;Getty/Illustration by Kevin Rebong for The Real Deal)
Brookfield Property Partners reports $2B in losses in 2020
Brookfield Property Partners reports $2B in losses in 2020
Four of the malls in question: Crossroads Center in St. Cloud, Minnesota, Mall St. Matthews in Louisville, Kentucky, North Point Mall in Alpharetta, Georgia and Park Place Mall in Tucson, Arizona. (Crossroads Center, Mall St. Matthews, North Point, Park Place)
Return to lender: 10 malls Brookfield may give up, and why
Return to lender: 10 malls Brookfield may give up, and why
One New York Plaza and Brookfield Property Partners CEO Brian Kingston (Photos via Brookfield)
Here’s what tenants are paying at Brookfield and CIC’s One New York Plaza
Here’s what tenants are paying at Brookfield and CIC’s One New York Plaza
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...