BentallGreenOak commits $400M to multifamily venture

Asset manager teams up with White Oak Partners to acquire $1B in assets

BentallGreenOak Co-CEOs Sonny Kalsi and John Carrafiell and White Oak CEO Michael Menzer (BentallGreenOak, White Oak)
BentallGreenOak Co-CEOs Sonny Kalsi and John Carrafiell and White Oak CEO Michael Menzer (BentallGreenOak, White Oak)

What do you get when two arboreal-themed investment firms team up? Apparently, a growing pile of cash earmarked for the multifamily sector.

Asset manager BentallGreenOak has committed $400 million of equity to a new partnership with multifamily investment firm White Oak Partners targeting $1 billion in multifamily assets, the two firms announced.

The venture will primarily invest in large communities in suburban and infill locations to generate consistent, long-term cash flow, according to the firms.

The first four deals will be in multifamily communities in secondary U.S. metropolitan areas with “resilient economies,” BentallGreenOak said in a release. Depending on market conditions, the partnership may also focus on value-add and workforce housing.

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White Oak CEO Mike Menzer cited BentallGreenOak’s capital sources and the scale of White Oak’s multifamily platform as an attractive basis for the partnership. White Oak’s portfolio consists of 12,732 units spread across 42 assets, according to its website.

“Multifamily housing, especially within White Oak’s target markets, have proven to be a durable, income-producing investment with relative low volatility in the current economic climate,” said Kevin Rivest, BentallGreenOak’s managing director of investments.

“It gives White Oak a company valuation that they wouldn’t have had otherwise,” added Redimere Advisors CEO Steve Mastrovich, who advised White Oak on the deal.

A subsidiary of Sun Life Financial, BentallGreenOak has been an active investor over the past year, committing $10 billion to the Japanese real estate market in December and picking up an Amazon warehouse in Brooklyn for $46 million in February.

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