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Starwood Real Estate Income Trust (SREIT), a non-listed real estate investment trust managed by Starwood Capital Group subsidiary Starwood REIT Advisors, has acquired a multifamily portfolio with 62 communities from Strata Equity Group, a privately held real estate investment and management company based in San Diego. Transaction terms were not disclosed.

The acquired portfolio includes 15,460 units in 27 markets across 10 states, primarily in the Southeast, including Georgia, North Carolina, and Tennessee. According to SREIT, the portfolio’s markets are experiencing population, employment, and income growth, with expectations that they will outpace the U.S. average by double over the next five years. The portfolio offers affordability with high-quality amenities, and Strata will remain in an asset management role.

“We have known and respected the Strata team for many years and are pleased that this relationship led to a mutually beneficial transaction for both companies,” said James Kane, head of multifamily asset management for Starwood Capital. “We look forward to continuing work with Strata to help realize the value of this portfolio.”

Strata chief investment officer Scott Wittman and chief operating officer Andrew Gordon led the team responsible for the structuring and execution of the transaction. In 2021, Strata has sold in excess of $4 billion in multifamily assets through multiple transactions.

As of Sept. 30, the SREIT portfolio had an asset value of $12.6 billion across 246 properties.

“We appreciate the opportunity to work directly with Strata on this significant transaction that is well-suited to the stable yield profile of SREIT,” said Ethan Bing, managing director at Starwood Capital. “Portfolio recapitalizations are a key component of our investment strategy for SREIT, and this transaction is another example of our ability to offer an attractive structure that meets the objectives of large owners seeking liquidity.”