Real estate investment firm Cortland Partners, Canada Pension Plan Investment Board (CPPIB), and GIC announced on Jan 9 that they have formed a joint venture (JV), with a targeted equity amount of US$550 million, to acquire and renovate 8,000 to 10,000 Class B multifamily units in the US. These are older assets with opportunities for improvements to the buildings, ongoing maintenance, and long-term appreciation.

CPPIB and GIC will each own a 45% interest while Cortland Partners will own 10%. The JV has acquired three garden-style communities. They are Lakecrest at Gateway Park, a 440-unit rental complex in Colorado; Aurum Falls River, a 284-unit rental complex in North Carolina; and Waterstone Apartments, a 308-unit rental complex in Texas. The JV will pursue other acquisition opportunities, primarily in the Southern and South-eastern US.