According to reports, KKR (KKR.US) confirmed that it has purchased more than 5,200 apartments across the United States for $2.1 billion, marking its largest-ever residential property acquisition. This deal shows that KKR is confident that the industry will rebound after a year of building booms that have affected rent growth.

The private equity firm acquired the investment portfolio from Quarterra, the apartment development arm of residential builder Lennar Corp (LEN.US). The transaction was completed on Tuesday.

The investment portfolio includes more than 18 multi-family residential assets in coastal and sunny markets, including California, Washington, Florida, Texas, Georgia, North Carolina, Colorado, and New Jersey.

The increase in multi-family residential supply has lowered real estate prices. According to MSCI Real Assets, apartment building prices fell more than 20% from their peak in July 2022 in May. Similarly, building sales in May fell by 44% year-on-year.

Justin Pattner, partner and head of real estate equity for the Americas at KKR, said, "We believe that now is a great time to invest in real estate, as transaction activity begins to pick up after two years of turmoil in the commercial real estate market."

KKR and Lennar Corp did not immediately respond to requests for comment.