Multifamily Properties in Orlando, West Palm Beach, Tampa, Miami Markets Comprise Overall of Nearly 6,200 Systems
Starwood Residential Or Commercial Property Trust Inc. (NYSE: STWD) has agreed to purchase 28 residential or commercial properties with a combined 6,185 cost effective housing systems in Orlando, Tampa and other major Florida markets for $600 million.
Starwood, the country’s biggest business mortgage REIT, revealed the signing of a definitive agreement to acquire the institutional-quality portfolio in an off-market transaction. The 99% leased portfolio is predominately situated in Orlando, with other homes in the West Palm Beach, Tampa and Miami markets.
Due to the timing of required regulatory approvals and the assumption of funding, the transaction is anticipated to close in phases. The first eight-property 1,740-unit phase closed Dec. 28 and Starwood expects to finish the remaining 20 homes in 2 stages by the end of the 2nd quarter, inning accordance with a STWD filing.
Starwood is getting the portfolio with a combination of systems in a freshly formed subsidiary called SPT Dolphin Intermediate LLC, which are exchangeable into STWD typical shares, money and debt funding. Other regards to the deal, including the seller, were not revealed.
“The properties lie in Florida markets with strong principles,” noted Starwood Property Trust Chairman and CEO Barry Sternlicht. “Provided the consistent supply/demand imbalance for top quality rent-restricted housing, combined with its appealing financing, we believe this financial investment will supply stable and appealing double digit cash-on-cash returns over the long term.”
Sternlicht stated the deal is an extension of Starwood’s previous financial investment in the Florida budget friendly multifamily real estate sector. Starwood Residential or commercial property Trust obtained a 31-property portfolio of Low Earnings Real estate Tax Credit-backed possessions totaling 8,498 systems in mid 2016 from The Wilson Co. for $563.5 million.
When the present offer entirely closes, the REIT’s portfolio will total over 15,100 real estate units located mainly in Florida.
Starwood Capital Group, which handles the REIT, likewise has investments in nearly 20,000 market-rate units in Florida markets. Starwood Residential or commercial property Trust, one of the largest real estate financing business in the nation with overall capital released considering that creation of over $37 billion, also operates as the biggest industrial home mortgage special servicer in the U.S. through its subsidiary LNR Property, LLC.