LA JOLLA, CA—Variant Commercial Real Estate LLC, based here, has purchased the 14 liquidated Babcock & Brown Ltd. apartment properties out of court-appointed receivership.

The portfolio includes 3,709 units across six states — Texas, Nevada, Maryland, Virginia, South Carolina and Florida. The properties, originally owned by Babcock & Brown Limited, were placed into voluntary administration in 2009 until creditors voted to liquidate the company. Since August 2011, the portfolio has been managed by the receiver, McKinley Co., who will stay in place as the property manager for Variant. Dick Goris with CBRE handled the purchase.

“We have been tracking this deal for a long time,” says Matt Hawkins, Variant’s president, in a statement. “This portfolio has tremendous upside potential, and our team is looking forward to executing our business plan now that the deal has closed.”

The company says it plans to capitalize in the portfolio’s common areas, grounds and interiors to the buildings to improve the living experience for residents at the properties. “Variant anticipates closing an additional $500 million in new acquisitions within the next 12 to 24 months. Our company continues to look for more A, B and C apartment buildings in the South and Southwest areas of the country,” says Kristina Quesada, Variant’s acquisitions director in the statement.