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Starwood Capital Group Secures $1.4B in Freddie Mac Financing

BETHESDA, MD—Berkeley Point Capital arranged the ten-year, floating rate loan for the 8,597 properties used as collateral.

By Erika Morphy | erikamorphy | | Updated on February 26, 2016
Freddie Mac headquarters Freddie Mac headquarters
BETHESDA, MD—Starwood Capital Group has made a number of massive acquisitions lately; it was inevitable that some or all of these deals would be tapping the capital markets for acquisition financing. And for the multifamily asset class, the best deals in town are available from the GSEs – in this case Freddie Mac, which provided 10-year, floating rate loans totaling $1.41 billion for a 25-property, five-state portfolio. Bethesda, MD-based Berkeley Point Capital arranged the deal for its long-term client. The floating rate loans, which include a five-year interest only period with a 30-year amortization, closed on Jan. 26, 2016. The 8,597-unit portfolio is located in California, Colorado, Florida, Maryland, and Virginia. It is a diverse group of properties, ranging in age from mid 60′s to late 2000′s. Starwood Capital Group is an acquirer of massive portfolios and certainly not limited to the multifamily asset class. The two most notable apartment portfolio transactions in which it has been involved recently are its purchase of 72 properties from Equity Residential for $5.365 billion and its joint purchase of Landmark Apartment Trust for $1.9 billion . Equity Residential’s apartment assets are spread across five states, with major concentrations in South Florida, Denver, the Washington, DC metro area, Seattle and the Inland Empire. “All five of the country’s top multifamily markets for absorption rate over the past four quarters are represented in this portfolio, and we expect the multifamily fundamentals for these markets to remain positive going forward,” Starwood Capital VP Ethan Bing said in earlier comments.

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