Starwood Capital Group

An affiliate of Starwood Capital Group has added 4,448 multifamily units in 21 communities predominantly located in Florida, Dallas-Fort Worth and Houston to its portfolio to grow to more than 20,000 units.

The garden-style apartment portfolio is 96% occupied. No financial terms of the transaction were disclosed.

"This transaction is an extension of Starwood Capital's successful investments in the affordable multifamily housing sector, and we are pleased to add these residential communities to our growing multifamily portfolio," said Mark Keatley, managing director at Connecticut-based Starwood Capital.  "In fact, this acquisition brings Starwood and its affiliates' total ownership of affordable housing properties to nearly 20,700 units, making us one of the top 10 largest owners in the United States."

The portfolio features top-tier amenities, including swimming pools, clubhouses, playgrounds, fitness centers and laundry facilities. The properties in the portfolio have an average vintage of 2004, boast low vacancy rates and offer affordable options for renters in attractive markets, Starwood Capital states.

The portfolio's metropolitan areas are projected to experience robust economic and population growth over the next five years, and most are projected to see five-year income growth of greater than 5%, according to commercial real estate firm CBRE Inc.

Starwood also points to the fact that Texas and Florida rank first and second, respectively, in business-friendly state rankings and "continue to attract new residents due to high quality of life and low cost of living factors, compared to other United States markets."

Keatley called the latest investment "a rare opportunity to acquire high-quality, well-located affordable housing assets in scale. There is a persistent supply-demand imbalance for high-quality affordable housing in these markets."

He said the portfolio's existing income "has significant downside protection along with multiple opportunities for upside. Thus, we are confident this portfolio is well-positioned to deliver attractive risk-adjusted returns to our investors."

Starwood Capital Group is a private investment company with a core focus on global real estate, energy infrastructure and oil and gas. Starwood and affiliates maintain 13 offices in five countries with 4,000 employees.

Since its inception in 1991, Starwood Capital Group has raised $45 billion of equity capital and currently has in excess of $60 billion of assets under management.