Sternlicht has been bullish about multifamily's returns. Sternlicht has been bullish about multifamily’s returns.
GREENWICH, CT— Starwood Capital Group and Equity Residential have closed on a deal for 23,262 apartment units. First announced this past October , the $5.365-billion sale represents about one quarter of EQR’s portfolio. In related news, the sale of Landmark Apartment Trust to a partnership of Starwood Capital and Milestone Apartment REIT closed on Wednesday. Both deals, originally announced within a few days of one another, are part of a massive scaling-up of Starwood Capital’s multifamily presence. When Starwood Capital announced the EQR acquisition, the company noted that it had acquired or had agreed to acquire more than 67,800 apartment units over the preceding 12 months, including the EQR portfolio and its share of Landmark’s holdings. “The size of this transaction underscores our conviction in multifamily housing’s continuing ability to offer superior risk-adjusted returns,” Barry Sternlicht , chairman and CEO of Starwood Capital, said this past October. “The strong underlying demographics for apartments and positive leverage—resulting in robust cash-on-cash yields—make this portfolio a very attractive investment.” EQR said Wednesday morning that the sale of 71 of the 72 apartment communities to Starwood Capital had closed on Tuesday, with the remaining sale expected to close later on Wednesday. Comprising a mix of mid-rise and garden-style apartment buildings and located mainly in suburban markets, the portfolio’s assets are spread across five states, with major concentrations in South Florida, Denver, the Washington, DC metro area, Seattle and the Inland Empire. Neal, Gerber & Eisenberg LLP served as EQR’s legal advisor on the sale to Starwood Capital. Kirkland & Ellis LLP and Paul Hastings LLP served as Starwood’s legal advisors on the deal. The Landmark Apartment sale of apartments across eight Sunbelt states continues a run of recent privatizations in the REIT sector, with the Richmond, VA-based REIT being taken private for $1.9 billion in cash, including the assumption of debt. A controlled affiliate of Starwood Global Opportunity Fund is acquiring Landmark’s ownership interest in 63 apartment communities totaling 19,615 units. Dallas-based Milestone will take control of 4,172 units across 15 properties, and will serve as property manager for Starwood’s portion of the portfolio.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.