Home Alts News Starwood REIT Buys Affordable Housing Portfolio for Nearly $461 Million

Starwood REIT Buys Affordable Housing Portfolio for Nearly $461 Million

Starwood Real Estate Income Trust Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has purchased an 18-property affordable housing multifamily portfolio for $460.9 million excluding closing costs.

Starwood Real Estate Income Trust Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has purchased an 18-property affordable housing multifamily portfolio for $460.9 million excluding closing costs.

The Southeast Affordable Housing Portfolio totals 3,336 units with an occupancy of 96 percent as of the closing.

The portfolio is predominantly located in high-growth Sunbelt markets that have “significant overlap” with Starwood REIT’s existing multifamily properties.

For example, the company said, more than 50 percent of the portfolio is located in Orlando, Jacksonville, Raleigh, and Charlotte, which are all top 10 markets for projected population growth over the next five years, according to Nielsen.

“We believe that affordable housing communities provide strong downside protection with rents that rise in tandem with median incomes, which are projected to grow in these markets,” noted Starwood REIT.

Starwood Real Estate Income Trust Inc. invests in stabilized real estate across the United States and Europe. The REIT broke escrow in December 2018 and raised $615.6 million in investor equity as of the third quarter of 2019. The REIT’s real estate portfolio totals $792 million across 27 properties, and the company had $269.2 million invested in 87 positions in real estate-related securities.

Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure, and oil and gas, and since its inception in 1991, has raised $45 billion of equity capital. The firm has in excess of $60 billion of assets under management.

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