Starwood Real Estate Income Trust Acquires Multifamily Affordable Housing Portfolio in Southeastern United States
February 19, 2020
MIAMI, Fla., Feb. 19, 2020 /PRNewswire/ — Starwood Real Estate Income Trust (“SREIT”), a non-traded REIT managed by Starwood Capital Group (“Starwood Capital”), announced today the acquisition of a stabilized Southeast Affordable Housing Portfolio with 3,336 units located in 18 communities. 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. Terms of the transaction were not disclosed.
The acquired portfolio is 96% occupied and located predominantly in Florida and North Carolina. The portfolio’s high-quality garden-style residential units feature top-tier amenities, including swimming pools, clubhouses, playgrounds, fitness centers and laundry facilities. The properties in the portfolio benefit from low vacancy rates and offer affordable options for renters in attractive Sun Belt markets.
These metropolitan areas are projected to experience robust economic and population growth over the next five years, according to Nielsen, with the portfolio’s largest markets including Orlando, Jacksonville, Charlotte, and Raleigh ranked in the top 10 for population growth with estimates doubling that of the US. Historically these MSAs have outpaced the US, averaging 3.6% income growth over the past five years compared to the US average of 2.9%. Over the next five years these markets are projected to see average income growth of greater than 3.5%. Furthermore, Florida and North Carolina rank high in business-friendly states rankings and continues to attract new residents due to high quality of life and low cost of living factors.
