The portfolio's metropolitan areas are projected to experience robust economic and population growth over the next five years, and most are projected to see five-year income growth of greater than 5%, according to commercial real estate firm CBRE. Starwood also points to the fact that Texas and Florida rank first and second, respectively, in business-friendly state rankings and "continue to attract new residents due to high quality of life and low cost of living factors, compared to other United States markets."

"This investment was a rare opportunity to acquire high-quality, well-located affordable housing assets in scale. There is a persistent supply/demand imbalance for high-quality affordable housing in these markets," Keatley notes. "Furthermore, we believe the existing income in this portfolio has significant downside protection, along with multiple opportunities for upside. Thus, we are confident this portfolio is well positioned to deliver attractive risk adjusted returns to our investors."

Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil and gas. The firm and its affiliates maintain 13 offices in five countries around the world, and currently has approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised $45 billion of equity capital, and currently has in excess of $60 billion of assets under management.