Starwood REIT Buys Three Real Estate Portfolios for $809 Million
Starwood Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, has purchased two affordable housing portfolios and one industrial portfolio for a combined $809 million.
Starwood Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, has purchased two affordable housing portfolios and one industrial portfolio for a combined $809 million.
The Mid-Atlantic Affordable Housing Portfolio, purchased for $531.3 million, includes 28 separate multifamily communities with a total of 3,660 units. The portfolio has an occupancy of 99 percent at closing and is predominantly located in Virginia (mostly the Washington D.C. metro area) and North Carolina.
The Florida Affordable Housing Portfolio II is comprised of four multifamily communities with a total of 958 units located in Jacksonville, Florida and was purchased in an off-market transaction for $113.5 million, excluding closing costs. At the time of acquisition, the portfolio had in-place occupancy of 99 percent.
The REIT also purchased the four-asset Marshfield Industrial Portfolio for approximately $164.2 million, excluding closing costs. The portfolio is comprised of 1.3 million square feet of Class A properties (1999 average vintage) in the Baltimore-Washington metropolitan statistical area. The Portfolio is currently 100 percent leased to six tenants with a six-year weighted average lease term and 2.7 percent annual weighted average contractual rent bumps. The largest tenant is Amazon, which leases 59 percent of the Marshfield Industrial Portfolio.
In other company news, Starwood REIT recently registered a $5 billion follow-on offering, comprised of up to $4 billion of Class D, Class I, Class S and Class T shares of its common stock and $1 billion in distribution reinvestment plan shares.
Starwood Real Estate Income Trust broke escrow in December 2018 and raised $1.7 billion in investor equity as of mid-October 2020, as well as $44.5 million in distribution reinvestment proceeds. As of September 30, 2020, the REIT’s portfolio had a total asset value of $4.3 billion across 106 properties.
