Starwood Real Estate Income Trust Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has purchased a seven-property, 1,462-unit affordable housing portfolio located in the Phoenix area from ReNUE Properties for $345 million. The purchase is reportedly one of the largest affordable housing transactions in the state’s history.
The properties include Desert Eagle in Glendale (196 units); Village at Sun Valley in Mesa (276 units); Tierra Antigua in Mesa (174 units); Lake Pleasant in Peoria (152 units); San Fernando in Mesa (264 units); Bella Vista in Phoenix (200 units); and ReNUE Downtown in Phoenix (200 units).
The sales closed on April 8th, except for Bella Vista and ReNUE Downtown (formerly known as Legacy Bungalow) which are expected to close by the end of the month.
The properties had an average occupancy rate of 99.2 percent at closing.
Starwood Real Estate Income Trust invests in stabilized real estate across the United States and Europe and has raised $3.9 billion in its initial public offering from December 2017 to June 2021. Its $10 billion follow-on offering was declared effective in early June 2021 and raised $5.8 billion, as of mid-March 2022. As of February 28, 2022, the REIT’s NAV was approximately $10.7 billion.