Behringer Harvard Gets New Funding Round For Apartments

By Jon Peterson

Texas-based real estate investor Behringer Harvard has secured $100 million in new equity from Dutch pension funds to buy U.S. apartments, including properties in the San Francisco Bay Area.

The latest allocation from PGGM Private Real Estate Fund represents the third $100 million from the Dutch investment vehicle that has been awarded to Behringer Harvard since May 2008.

The San Francisco region has been one of the more active multifamily investment markets for Behringer Harvard. The most recent apartment deal came this week with the $38.7 million purchase of the 277-unit Acacia on Santa Rosa Creek in Santa Rosa. The investor’s first multifamily purchase in the area came in fall 2009 with the $79.7 million acquisition of the 390-unit Waterford Place in Dublin. Capital from PGGM covered 45 percent of the equity for the deal.

Behringer Harvard is targeting deals in San Francisco and the East Bay for its Multifamily REIT, a publicly registered but non-listed real estate investment trust. The company plans acquisitions in a variety of U.S. metropolitan markets, including Las Vegas, Los Angeles and Dallas. The real estate company wants apartments that are located in growth regions.

Behringer Harvard Holdings LLC, the parent company of the Behringer Harvard apartment REIT, manages multiple real estate investment vehicles, each specializing in a different asset type and risk profile.

The company acquired a nearly 100,000 square-foot office building in Los Altos in late 2006 for Behringer Harvard REIT I, and the Santa Clara Tech Center at 700, 750 and 800 Central Expressway in May 2007. The 456,000 square-foot Santa Clara property sold for $70 million, according to published reports, and includes a redevelopment opportunity for a data center. It was acquired by Behringer Harvard Opportunity REIT I Inc.

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