Starwood Real Estate Income Trust Inc., a non-traded REIT sponsored by global real estate investment manager Starwood Capital Group, plans to purchase two multifamily properties for a combined $82 million once its offering proceeds are released from escrow. The properties have already been purchased by affiliates of the REIT’s advisor, Starwood REIT Advisors LLC.
The first property is comprised of 256 units and located in Mesa, Arizona, the largest suburb of the Phoenix metropolitan area. The property’s purchase price is approximately $46 million, and is 98 percent leased.
The second property is a newly constructed 203-unit multifamily community located near downtown Savannah, Georgia. The property’s purchase price is approximately $36 million, and is 94 percent leased.
Starwood REIT’s board has reviewed and approved each acquisition as consistent with the company’s investment guidelines and in the best interests of its stockholders, however the company has not assumed any formal obligation to purchase either of the properties.
Starwood REIT’s $5 billion offering was declared effective by the SEC in January 2018. The REIT plans to focus on acquiring stabilized, income-oriented commercial real estate and debt secured by commercial real estate located in the United States, and possibly Europe. In July 2017, Starwood REIT was capitalized with a $200,000 investment by Starwood Real Estate Income Holdings L.P. in exchange for 10,000 Class I shares. Until the release of proceeds from escrow, the per share purchase price of its shares will be $20.00 each. Following the release, the share price will generally equal the company’s prior month’s net asset value.