KKR & Co Inc ( KKR ) shares are trading lower Tuesday. A new report suggests the company is making a big bet on rising rents.

What To Know: According to a Wall Street Journal report, KKR has made its largest purchase of apartment buildings ever, suggesting the private-equity firm is anticipating a rebound in multifamily housing.

The report indicates that KKR paid $2.1 billion to acquire more than 5,200 apartment units across the United States. The multifamily housing deal included 18 new mid- and high-rise buildings and reportedly closed on Tuesday.

KKR purchased the portfolio of properties from Lennar Corp’s apartment development arm Quarterra. Lennar ( LEN ) reportedly said it would consider selling additional buildings from its portfolio to other buyers. 

According to data firm MSCI Real Assets, apartment-building prices have fallen more than 20% from their peak in July 2022. Building sales were also reportedly 44% lower last month than they were a year earlier.

This isn’t the only property acquisition KKR has made this year. The firm reportedly paid $1.64 billion for a student-housing portfolio owned by Blackstone Real Estate Income Trust in April and KKR also bought an industrial campus in Nashville last month.

KKR told the Wall Street Journal that it focused on building its real-estate business via high volumes of smaller transactions while interest rates were low. Now the firm has shifted its strategy as fewer buildings are selling and there are better opportunities for portfolio deals.

See Also: Grant Cardone Thinks The Average Rent In America Will Nearly Double In The Next Decade – And He’s Invested Accordingly

KKR Price Action: KKR shares were down 0.25% at $107.20 at the time of publication, according to Benzinga Pro.