Starwood REIT Continues Buying Spree with Latest Hotel Portfolio Purchase
Starwood Real Estate Income Trust, Inc., a publicly registered non-traded REIT sponsored by global real estate investment manager Starwood Capital Group, has purchased a portfolio of eight select-service hotel properties from Noble Investment Group.
Starwood Real Estate Income Trust, Inc., a publicly registered non-traded REIT sponsored by global real estate investment manager Starwood Capital Group, has purchased a portfolio of eight select-service hotel properties from Noble Investment Group for $229 million, excluding closing costs.
The 1,057-room portfolio is comprised of eight newly renovated, premium-branded hotels located primarily in Florida and Colorado. The acquisitions were made in a series of off-market transactions, which represents an approximately 5-10 percent discount to replacement cost in their respective markets, the company said.
Two properties are located near the Tampa Airport in Florida, which is undergoing an approximately $2 billion renovation and expansion. Two additional properties are located in Fort Myers, Florida.
One property is located in Boulder, Colorado within close proximity to Google LLC and three mixed-use developments, while the remaining properties are located in Knoxville, Tennessee; Little Rock, Arkansas; and Cleveland, Ohio.
In other company news, the REIT purchased six multifamily properties earlier this month from an affiliate its advisor, Starwood REIT Advisors, for a total of $182 million.
Starwood REIT broke escrow in December 2018 after raising approximately $165 million in proceeds for its continuous public offering. The REIT focuses on acquiring a diversified portfolio of stabilized, income-producing real estate in the United States and Europe, including multifamily, office, hotel, and industrial assets, as well as other property types. The REIT’s $5 billion offering was declared effective by the SEC in January 2018.
Founded in 1991, Starwood Capital is a private real estate investment firm with a core focus on global real estate, energy infrastructure, and oil and gas. The company has more than $60 billion in assets under management.
