Sale Attracts Record Price for Multifamily Portfolio in Latin America

CBRE Capital Advisors was the exclusive advisor on the sale of a six-property, 2,125-unit multifamily portfolio located in Monterrey and Mexico City, Mexico, to CIM for 4.25 billion MXN ($230 million USD). The sale represents the largest multifamily portfolio in Latin America on record.

Tim Gifford of CBRE Capital Advisors, Latin America, advised on the transaction on behalf of the seller, a major global private equity fund.

The Class-A portfolio includes 2,125 residential units located in six of Mexico’s most sought after full-service residential buildings. The portfolio also contains approximately 14,000 square meters (150,695 square feet) of Class A office space and over 33,000 square meters (355,209 square feet) of prime retail space.

The properties included in the transaction are:

• Vyve Lago Alberto, Polanco, Mexico City, 357 units

• Vyve Santa Fe, Santa Fe, Mexico City, 333 units

• Vyve Mitikah, Mexico City, 498 units

• Latitud, Monterrey, 217 units

• La Capital, Monterrey, 190 units

• Garza Sada 1892, Monterrey, 530 units

“This was an incredible transaction for both the buyer and seller, and gives CIM premiere apartment assets in highly sought after communities throughout Mexico,” said Mr. Gifford. “We collaborated with our colleagues in CBRE Mexico, who were able to provide on-the-ground support and in-depth, local market knowledge. This transaction showcases how CBRE’s global capabilities combined with local expertise provide superior advantage for our clients.”

The portfolio is located in highly desirable areas near employment centers and universities. Each building features studio, one-, and two-bedroom apartments designed to meet the needs of families, young professionals and students. Retail tenants include Santander, DHL, Telcel, Copa Airlines, Oxxo, Círculo K, Sportsworld, and Farmacias Benavides, among others.

“We have seen a significant pick up in interest from global capital sources looking to allocate capital into the multifamily asset class in Latin America. In addition to the recent Mexico multifamily portfolio closing, we are also advising on a joint venture with a Latin American developer for an 11,000-unit multifamily platform, which has begun to receive significant interest from international capital sources,” Mr. Gifford added.

According to CBRE Research’s Latin America Investor Intentions Survey 2016, Mexico City was cited as one of the most attractive metros for acquisitions by investors in 2016.