Starwood Real Estate Income Trust Completes Acquisition of 15,460 Unit Multifamily Housing Portfolio from Strata Equity Group

MIAMI, FL – Starwood Real Estate Income Trust, a privately held REIT managed by Starwood REIT Advisors, LLC, a subsidiary of Starwood Capital Group, announced the acquisition of an apartment building portfolio of 15,460 units in 62 communities from Strata Equity Group . a privately owned real estate investment and management company based in San Diego. The terms of the transaction were not disclosed.

The acquired portfolio is located in 27 markets in 10 states, primarily in the southeastern United States, including Georgia, Tennessee and North Carolina. The portfolio’s markets are experiencing significant population, employment and income growth that is projected to double the US average over the next five years. These markets offer lower taxes and lower cost of living below the national average and continue to benefit from migration trends to the sunbelt and other growth markets. The units in the portfolio offer affordable prices with high quality equipment. Strata will continue to perform an asset management role for the acquired portfolio.

James Kane, Head of Multifamily Asset Management at Starwood Capital, said: “We have known and respected the Strata team for many years and we are delighted that this relationship has resulted in a mutually beneficial transaction. We look forward to continuing to work together with “Strata to realize the value of this portfolio.”

The Strata team responsible for structuring and executing the transaction was led by Scott Wittman and Andrew Gordon, Strata’s Chief Investment and Chief Operating Officers. Strata sold over $ 4 billion worth of multi-family assets through multiple transactions earlier this year.

David Michan, CEO of Strata, commented, “We are very excited to close this extraordinary transaction with Starwood on behalf of Strata and our investors. This confirms our strategy of acquiring high quality housing in growing markets this portfolio in addition to the strong platform we have built.

As of September 30, 2021, the SERIT portfolio had total assets of $ 12.6 billion in 246 properties. “We appreciate the opportunity to work directly with Strata on this significant transaction that fits well with SRIT’s stable return profile,” added Ethan Bing, managing director of Starwood Capital. “Portfolio recapitalizations are an important part of our investment strategy for REITs and this transaction is another example of our ability to offer an attractive structure that meets the goals of large liquidity seekers.”