Starwood REIT buys affordable multifamily housing portfolio for $461m

Starwood REIT buys affordable multifamily housing portfolio for $461m
Photo: Courtesy of Starwood Real Estate Income Trust

Starwood Real Estate Income Trust (SREIT), a non-traded REIT managed by Starwood Capital Group, has acquired a stabilized affordable multifamily housing portfolio with 3,336 units located in 18 communities for $461 million. The acquired portfolio is 96% occupied and located in Florida, North Carolina, Virginia, Arizona, and Colorado.

With this acquisition, controlled affiliates of Starwood Capital own approximately 24,000 affordable housing units across the country, collectively making the Starwood entities a top-five owner of affordable housing units in the United States.

“This transaction is an extension of SREIT’s successful investments in the Florida affordable multifamily housing sector, and expansion into complementary high-growth Sun Belt markets,” said Mark Keatley, Managing Director at Starwood Capital.

“This was truly a rare opportunity to acquire high-quality, well-located affordable housing assets in scale. The portfolio is well positioned to deliver attractive risk-adjusted returns given the persistent supply/demand imbalance for high-quality affordable housing, and we see long-term benefit for residents across the country in maintaining the sustainability of affordable housing. We are pleased to add these residential communities to the SREIT portfolio and intend to continue to invest in the affordable housing sector,” he added.

As of January 31, 2020, the SREIT portfolio has an estimated total asset value of $2.5 billion across 72 properties.

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