Kolter Group forms $1B joint venture with Och-Ziff

Real estate development firm The Kolter Group said Tuesday it will work with an affiliate of Och-Ziff Capital Management Group LLC to invest in residential communities in the Southeast.

The joint venture, between Kolter and Och-Ziff Real Estate Acquisitions LP, will seek to acquire $1 billion of assets using equity and debt.

"We believe that the present downturn in the residential real estate market has set the stage for abundant investment opportunities throughout the Southeast," said Bobby Julien, CEO of West Palm Beach, Fla.-based Kolter.

The newly created Kolter-Och-Ziff partnership will target the acquisition of residential communities as well as equity and debt interests in residential property. It will invest in assets ranging from raw land to finished condominium units, the company said.

Och-Ziff Capital Management Group LLC, an alternative asset manager, is based in New York.

Its shares rose 41 cents, or 2.4 percent, to $17.21 in midday trading.