Starwood REIT Buys 62-Property Multifamily Portfolio from Strata
Starwood Real Estate Income Trust Inc, a perpetual-life monthly net asset value REIT, has purchased a multifamily portfolio of 62 properties.
Starwood Real Estate Income Trust Inc, a perpetual-life monthly net asset value REIT, has purchased a multifamily portfolio of 62 properties from Strata Equity Group. Financial terms were not disclosed.
The 15,460-unit portfolio is located in 27 markets across 10 states, primarily in the Southeast region of the United States, including Georgia, Tennessee, and North Carolina. Strata will remain in an asset management role for the acquired portfolio.
Starwood said that the portfolio’s markets are experiencing “substantial population, employment and income growth, projected to outpace the U.S. average by 2x over the next five years.”
“We appreciate the opportunity to work directly with Strata on this significant transaction that is well suited to the stable yield profile of [Starwood REIT],” said Ethan Bing, managing director at Starwood Capital. “Portfolio recapitalizations are a key component of our investment strategy for [Starwood REIT] and this transaction is another example of our ability to offer an attractive structure that meets the objectives of large owners seeking liquidity.”
Starwood Real Estate Income Trust, which invests in stabilized real estate across the United States and Europe, raised $3.9 billion in its initial public offering from December 2017 to June 2021. The REIT’s $10 billion follow-on offering was declared effective in early June 2021 and has raised $2.4 billion, as of mid-October 2021. As of September 30, 2021, the REIT’s aggregate NAV was $6.4 billion.
As of September 30, 2021, the Starwood REIT portfolio had a total asset value of $12.6 billion across 246 properties.
