Quarterra Lists 3,700-Unit Portfolio Amid Repositioning

The revamp of Lennar’s multifamily arm is set to continue with a 10-property, 3,700-unit portfolio going up for sale.

The Charlotte-based subsidiary of the homebuilder giant is seeking to sell the bundle of properties, either altogether or individually, CoStar reported. The company hired JLL to help market the 3,746-unit portfolio.

The multifamily buildings are roughly four years old on average and are likely to sell for less than what they would cost to build, according to a marketing brochure. The properties range anywhere from 189 units to 500 units.

Four of the properties feature at least 400 units, including the aforementioned 500-unit property in Emeryville, California. The other largest properties are in White Plains, New York; Stamford, Connecticut; and Houston, Texas.

The JLL team leading the portfolio sale includes Roberto Casas, Steven Binswanger and Denise Fansler. Quarterra did not respond to a request for comment from the outlet.

Just this week, Atlas Real Estate Partners acquired the Maddox, a 326-unit apartment complex in Katy, Texas, from Quarterra. The sales price was undisclosed, but Atlas said it was purchased at a “significant discount to replacement cost.” The Maddox, built in 2019, has been offering tenants substantial concessions.

Quarterra’s recent divestment activity also included the sale of a 212-unit property in Elmhurst, Illinois, to the State Teachers Retirement System of Ohio last month for $84.5 million.

Earlier this year, Lennar sold its majority stake in Quarterra to asset management firm TPG after a stretch of losses for Quarterra that emerged amid rising construction costs and oversupply in the Sun Belt. The company put more than 11,000 apartment units on the market in 2023, including a smattering of projects in Dallas, Houston and Austin.

Private equity titan KKR bought more than 5,200 units over 18 complexes from Quarterra for $2.1 billion the following year.

Fort Worth-based TPG plans to invest heavily in new construction, according to CoStar.

— Holden Walter-Warner