Broadstone’s Residential REIT Focusing Exclusively on Multifamily

Chris Czarnecki, CEO of Broadstone Real Estate, LLC, participated in a video interview at Nareit’s 2018 CEO Forum & Advocacy Day.

Broadstone is a private REIT that sponsors two investment platforms, Broadtree Residential and Broadstone Net Lease.

Czarnecki discussed Broadstone Residential’s decision to sell its single-family rental portfolio to focus exclusively on multifamily properties.

While the single-family rental market is “still tremendous,” with solid long-term investment potential, Czarnecki noted that other companies were ahead of Broadtree in terms of scale and access to capital. At the same time, the company’s investor base favored a pure play focus on multifamily, he said.

Broadtree sold its single family rental portfolio for almost a 25 percent premium over the original purchase price, Czarnecki noted. Proceeds from the sale have been used to acquire a number of multifamily assets.

“We expect to be at 1,500 units by the end of the first quarter and it’s off to the races from there,” Czarnecki said.

Meanwhile, Czarnecki commented on Broadstone Net Lease’s record year for acquisitions and capital market activity in 2017.

On the legislative front, Czarnecki said a 20 percent REIT dividend deduction included in recent tax reform legislation is “a huge win for us.”