We told you about people fleeing the big cities for the Solar belt, but a private equity firm is betting on people staying close to cities and their office buildings. investment giant, KKRbelieves there are still valuable opportunities outside of the high-profile Sunbelt.

KKR, through its KKR Real Estate Select Trust Inc. (KREST), completed the purchases of two Class A multi-family properties. Properties in Downtown Brooklyn and West Philadelphia have a combined 1,380 units and offer “best in class” amenities with easy access to public transportation, universities from Philadelphia, to the best-performing hospitals and submarkets in Brooklyn.

“We continue to see long-term trends supporting demand for lifestyle-oriented real estate near city centers,” says Daniel Roudin, managing director of KKR’s real estate equity team. “Both of these assets are well located from a life and work perspective and are ideal for young professionals looking for quality, lifestyle-oriented accommodation with easy access to major cities.”

The transactions are representative of KKR’s three-pronged investment strategy: mortgage, prime single-tenant real estate and stabilized income-generating real estate. The deal falls under thematic and income-generating real estate in high-growth markets, which includes well-let multi-family properties.

While we talked about the Sunbelt Population and real estate investment trends, KKR is not bogged down in these population shifts. The company recognizes the opportunity and has included the region in its KREST fund through the acquisition of The beach house apartmentsa multi-family property based in Jacksonville, Florida.

However, the company does not treat its entire portfolio according to the investment thesis and believes that the migration to the southern and western regions of the United States is nothing new. That of the firm investment strategy page details that the net internal migration rate has been flirting around the 5% mark for almost 30 years.

Is anyone you know going back to town? let me know at [email protected].

Cole Lipsky