- Fairfield Residential and Sunroad Enterprises recapitalized a $1.1B, 15-property multifamily portfolio spanning six states, with JLL arranging the financing.
- The deal includes $415M in Freddie Mac financing and $250M from KKR, supporting six Class-A and nine value-add assets primarily located in high-growth Sun Belt markets.
- The transaction reflects Fairfield’s strategy to pursue recapitalization opportunities while expanding its value-add fund, which closed earlier this year with $1.5B in equity commitments
Recapitalization Deal
Fairfield Residential has joined forces with San Diego-based Sunroad Enterprises to recapitalize a 15-property multifamily portfolio valued at $1.1B, per Bisnow. The portfolio spans 3,830 units across six states, JLL announced.
The financing package, arranged by JLL’s Capital Markets group, includes $415M from Freddie Mac and $250M from KKR.
Portfolio Snapshot
The properties are concentrated in Sun Belt markets and consist of both garden-style and mid-rise communities. The portfolio mix includes six Class-A assets and nine value-add assets, with an average construction vintage of 2011.
By state, the portfolio includes:
- Six properties in Arizona
- One in Nevada
- Three in Colorado
- Two in North Carolina
- Two in South Carolina
- One in Georgia
Strategic Fit
Sunroad spent six years assembling the multifamily portfolio and had been evaluating exit options. Partnering with Fairfield created liquidity without requiring a sale, according to Sunroad Asset Management President Dan Feldman.
For Fairfield, the deal aligns with its focus on recapitalization strategies. The company closed a $1.5B multifamily value-add fund in February, with $385M already deployed across 16 assets.
“Sunroad has done an excellent job maintaining the portfolio in an institutional manner and has executed a top-of-the-line renovation strategy that we look forward to completing as partners,” Fairfield Executive Vice President Wes Dickerson said.
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Recent Transactions
The deal follows Fairfield and Sunroad’s $462M July transaction for five Arizona assets, which the Phoenix Business Journal reported was the largest multifamily deal in the state’s history.
Financing and Advisory
The Freddie Mac loan covers 10 assets in the portfolio, and JLL Real Estate Capital will service it. Aldon Cole, Roberto Casas, Timothy Wright, and Bharat Madan led JLL’s advisory team. Mark Wintner handled Colton Apartments in Henderson, Nevada.
Why It Matters
The recapitalization highlights how institutional investors are navigating today’s high-interest-rate environment by structuring creative partnerships rather than selling outright. Multifamily remains a favored asset class, especially in Sun Belt markets where population and job growth continue to outpace the national average.
What’s Next
With $1.5B in fresh equity commitments to deploy, Fairfield is expected to pursue additional recapitalization deals and value-add opportunities. More joint ventures like this may emerge as owners seek liquidity while avoiding forced sales.
