Starwood REIT Buys Two Housing Portfolios, Four Industrial Assets for $809 Million
November 5, 2020
Starwood Real Estate Income Trust Inc. acquired two affordable housing portfolios and an industrial property portfolio for a total of $809.0 million.
The non-traded REIT of Starwood Capital Operations LLC bought a portfolio comprising 3,660 units across 28 multifamily communities primarily in Virginia and North Carolina for $531.3 million on October 27. The portfolio was 99% occupied as of the closing.
The REIT also bought on October 30 an affordable housing portfolio comprising 958 units across four multifamily communities in Jacksonville, Florida, for $113.5 million. The Florida portfolio was also 99% occupied as of closing.
The four-asset industrial property portfolio was acquired on October 29 for $164.2 million. It comprises 1.3 million square feet of class A properties in the Baltimore-Washington metropolitan area and is fully leased to six tenants with a 6.0-year weighted average lease term. Amazon occupies 59% of the space.
According to the REIT’s 424b3 filing on November 2, “Subsequent to these acquisitions, our real estate portfolio will be 65% invested in multifamily and industrial properties, which we believe currently provide the most attractive risk-adjusted returns across the United States today.”
Sources: S&P Global Market Intelligence, SEC
