Investment firm KKR acquired a portfolio of 18 multifamily real estate assets on Tuesday from a closed end fund sponsored by developer Quarterra Multifamily for about $2.1 billion.

The portfolio includes 5,200 units across California, Washington, Florida, Texas, Georgia, North Carolina, Colorado and New Jersey.

The global commercial property industry, in particular offices, is still in the grip of its biggest slump since the 2007-09 financial crisis.

But non-bank lenders believe the worst may have passed and that they can generate attractive returns as valuations recover.

“We believe this is a great moment to invest in real estate, as transaction activity starts to pick up on the heels of two-years of dislocation in commercial real estate markets,” said Justin Pattner, KKR‘s head of real estate equity in the Americas.

KKR will partner with prominent multifamily real estate operators Carter-Haston, MG Properties and Dalan Real Estate to operate the assets.

Reuters