Starwood Capital Strikes $1.7B Refi for 13,000-Unit Housing Portfolio
Starwood Capital has secured $1.72 billion to refinance its 12,955-unit housing portfolio across the U.S. Most of the units consist of affordable and workforce housing.
The portfolio is spread across 10 states and consists of 52 properties. It's unclear what regions or cities they are located in, but Starwood noted that the majority of the units are located in "high-growth, high-migration markets."
Starwood first acquired the portfolio in 2021.
Walker & Dunlop arranged the deal through 10-year Freddie Mac loans. The CRE firm's Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, Michael Stepniewski, Michael Ianno and Dustin Stolly originated the deal.
"Financings of this size and complexity require a coordinated and collaborative team of bankers and underwriters. Led by senior managing director Dustin Stolly, the Walker & Dunlop team, working with Freddie Mac, executed flawlessly," Willy Walker, chairman and CEO of the firm, said in a statement.
"We are grateful for the trust Starwood placed in our team to deliver this refinancing, positioning the Strata Portfolio for sustained performance and continued long-term success."
As far as overall multifamily fundamentals go, RealPage's first-quarter national apartment report showed that the strong absorption of 93,330 units was able to push up occupancy to 94.9 percent. However, rent growth remains under pressure, up just 0.4 percent from the previous three months and down 0.5 percent year-over-year, as supply remains elevated in certain Sun Belt markets.
Overall, since its founding, Starwood Capital has invested in roughly 300,000 residential units, according to the company.
Source: GlobeSt/ALM