Starwood Real Estate Income Trust, Inc, a perpetual-life monthly NAV REIT sponsored by private investment firm Starwood Capital Group, has purchased a 33-property industrial portfolio and a mixed-use property located in Durham, North Carolina for a combined $430.9 million.
The MW Industrial Portfolio totals 4.1 million square feet of primarily Class A properties located in Chicago, Indianapolis, Columbus, and Milwaukee. The portfolio is currently 98 percent leased to 50 tenants and has maintained an average occupancy of 96 percent since 2012, the REIT noted.
Starwood REIT said, “The MW Industrial Portfolio benefits from being in markets with strong transportation networks, low costs of doing business, and is largely comprised of ‘light industrial’ product, which consists of buildings of less than 250,000 square feet.”
“The majority of new industrial supply remains concentrated in the bulk industrial space (properties with greater than 250,000 square feet) with a declining number of attractive land sites for smaller, more infill light industrial properties that continue to witness the substantial majority of tenant demand,” the company added.
The other acquisition, The Exchange on Erwin, was purchased in an off-market transaction and is comprised of 265 newly constructed midrise multifamily units and nearly 97,000 square feet of commercial space located directly across the street from Duke University.
The multifamily units are 99 percent occupied and the commercial space is 95 percent leased, while the medical office component of the commercial space is fully leased to Duke University medical tenants.
“In addition to its location directly adjacent to Duke University, the Exchange on Erwin is near world-class medical facilities, within a strong biotech and innovation hub, and 15 minutes from Research Triangle Park, which is comprised of 22.5 million square feet of commercial space and home to approximately 55,000 employees,” the REIT said.
In other news, Starwood REIT recently purchased The Thornton Apartments, a multifamily property located in Alexandria, Virginia, for $180.2 million, excluding closing costs.
Starwood Real Estate Income Trust Inc. invests in stabilized, income-producing 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 currently has in excess of $60 billion of assets under management.