Trei Real Estate has sold a third US multi-family real estate project to a local investor.
Trei, in partnership with Proffitt Dixon Partners, completed the 220-unit Queens Wedgewood-Houston rental property in Nashville, Tennessee, in May 2024, at a total investment of €58m.
The asset has now been sold to an undisclosed US investor for an unspecified amount, Trei said.
Pepijn Moshuis, CEO of Trei Real Estate, said: “Selling our Queens Wedgewood-Houston development enabled us to free up funds for the development of new residential projects.
“The rental housing segment in the so-called Sunbelt states continues to be extremely lucrative both for developers and for investors, which is reflected in the successful sale of this development at an attractive rate of return of about 15% internal rate of return.”
In addition to its current developments, Trei said it was acquiring land for future multi-family projects. The first site is on Merritt Island, Florida, in the ‘Space Coast’ region, and the second is in Charlotte, North Carolina, where Trei’s US headquarters is located.
“The multi-family sector in the south-eastern US remains a major growth market for us,” Morshuis said. “Our investments in this region mark a pinpoint response to the rise in demand for rental apartments in economically outperforming areas.
“Their population is growing, demand remains strong, and the investment conditions are attractive because of the comparatively low construction costs. These factors offer the perfect prerequisites to expand our property development pipeline for the long term and to generate reliable returns at the same time.”
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