MIAMI, FL – Starwood Real Estate Income Trust, a non-traded REIT managed by Starwood REIT Advisors, L.L.C., a subsidiary of Starwood Capital Group, announced the acquisition of two affordable housing portfolios with a combined 4,618 units located in 32 communities. With this acquisition, controlled affiliates of Starwood Capital, which include SREIT and other Starwood Capital-sponsored investment vehicles, own or are under contract to buy more than 34,000 affordable housing units across the country, making the Starwood entities collectively a top three owner of such units in the United States. Terms of the transactions were not told.
The bought portfolios are 99% occupied and offer affordable options for renters in attractive Mid Atlantic and Sun Belt markets. The portfolio’s high-quality garden-style residential units feature top-tier amenities, including swimming pools, clubhouses, playgrounds, fitness centers and laundry facilities.
Washington, D.C. and Jacksonville, which together make up 57% of the bought portfolios, have each experienced population growth that is double that of the United States over the past ten years. Washington, D.C. has a stable government and military employment base, while also benefiting from the recent influx of high paying tech (e.g., Amazon HQ2) and finance jobs. Jacksonville has experienced robust employment growth over the past five years, with a 16% increase in employment vs. a national average of 9% over that same time period. Looking forward, both markets are projected to significantly outpace the U.S. average in population growth. Other key markets within the portfolios include Raleigh, Charlotte, and Nashville, which all rank in the top 10 for projected five-year population growth, with estimates doubling that of the U.S. Additionally, over the next five years, these markets are projected to average annual income growth of 2.9%, which is 1.2% higher than the US projected income growth over the same time period.
“These transactions are an extension of SREIT’s successful investments in the affordable multifamily housing sector, providing us with a unique opportunity to buy high-quality, well-located assets in scale,” said Mark Keatley, Managing Director at Starwood Capital. “These investments have excellent downside protection provided by highly occupied properties with in-place rents that are 26% below comparable market-rate apartment rents, thus generating strong and dependable cash flow. Furthermore, these portfolios are well positioned to deliver attractive risk-adjusted returns given the persistent supply/demand imbalance for high-quality affordable housing, and we see long-term benefit for residents across the country in maintaining the sustainability of affordable housing. We are pleased to add these residential communities to the SREIT portfolio and intend to continue to invest in the affordable housing sector.”
“Our experience with both affordable and market rate multifamily properties in these markets allowed us to underwrite and do these transactions quickly and efficiently,” added Andrew Coren, Senior Vice President at Starwood Capital. “These portfolios provide substantial and defensive in-place cash yields, illustrated by stable performance and collections through COVID-19. The affordable housing sector has significant barriers to entry and these acquisitions also possess high growth potential based on demographic trends in these markets.”
As of September 30, 2020, the SREIT portfolio has a total asset value of $4.3 billion across 106 properties.

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DULUTH, GA – Venterra Realty bought The Maddox Apartments, in Duluth, Georgia for $75 Million. The acquisition of the community marks the 60th property in Venterra’s portfolio, and the first acquisition for Venterra Realty during the pandemic.
The Maddox is a Class A, garden-style property, hosting 372 units, that was built in 2007 and remains one of the newest and most desirable in the area. Located at 4370 Satellite Road, the property sits along the I-85 corridor, about 20 miles northeast of downtown Atlanta. The Maddox is also near the Gwinnett Place Mall, made well-known as Starcourt Mall in Season 2 of the Netflix series Weirder Things.
The community offers five unique one-, two-, and three-bedroom apartments ranging in size from 946 sqft to 1422 sqft, with rents starting around $1275 per month. 45% of the units have updated interiors, featuring stainless steel appliances, granite countertops, and wood plank floors. The Maddox hosts a robust amenity package for the area, including a saltwater swimming pool, 24-hour fitness center, playground, on-site dog park, and accepts 3 pets per apartment.
“We are excited to add another community in the greater Atlanta region, especially in Duluth, which adds an upward trending submarket to our Georgia portfolio. Duluth is the proverbial sweet spot; close enough for residents to commute into Atlanta, yet far enough away to provide a charismatic, suburban lifestyle. The property itself provides larger-than-average and unique floorplans which are a key attraction for current and future residents”, said Ash Thakore, Asset Manager for Venterra Realty.
Venterra will continue to renovate the remaining 55% of units, with the same level of interior appliances and finishes. The municipality is currently working through the final stages of designing a park that will be adjacent to the property to the west, complete with walking trails and recreational amenities. The park will join directly to The Maddox via a walking path, adding a new amenity for residents.
“The Maddox offers a prime opportunity for Venterra to establish a presence in Duluth, where we previously did not have any holdings.” said John Foresi, CEO of Venterra Realty. “The area offers a fantastic suburban location with an affordable cost of living and superior education system. Venterra is continuously looking to break into new markets”, added Andrew Stewart, Chairman of Venterra Realty.
Venterra Realty owns and manages 60 properties in 18 cities across the Southeastern US that provides housing to over 29,000 people and 5,000 pets. Venterra is committed to improving the lives of our residents by delivering an industry-leading customer experience. Venterra currently manages a portfolio of multi-family real estate assets totaling over $2 billion in value, generating yucky annual income in excess of $200 million. The organization has completed in excess of $2.2 billion of real estate transactions.

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LOS ANGELES, CA – Walker & Dunlop announced that it completed the $60,000,000 sale of 416 on Broadway, a 115-unit Class A apartment community in the established Glendale submarket of Los Angeles, California.
Originally built as for-sale condominiums in 2009, 416 on Broadway boasts exceptionally large floor plans, averaging 1,102 square feet. This unique feature has proven to be a significant advantage over the competition, as renters continue to work from home and desire extra space. In addition to spacious units, residents delight in a boutique feel, an abundance of outdoor amenity space, including a fully renovated state-of-the-art fitness center, and convenient access to the retail, entertainment, and dining in Glendale. Its brilliant location and unmatched offerings position 416 on Broadway to perform well for years to come.
Walker & Dunlop’s property sales team included Hunter Combs and Blake Rogers. The team represented both the buyer, Ron Nasch, and the seller, Essex Property Trust, serving as broker and advisor for the disposition.
Said Mr. Combs, “416 on Broadway is a best-in-class asset located in the durable Glendale submarket. Although Glendalehas seen an increase in multifamily inventory of about 11 percent since 2010, it has been able to consistently achieve occupancy rates north of 96 percent, as well as meaningful rent growth.” Combs added, “Additionally, from a sale perspective, the submarket has only seen six institutional multifamily sales since 2009, adding a scarcity premium to opportunities that arise. Moreover, the lack of supply headwinds is particularly encouraging.”
Walker & Dunlop also arranged Fannie Mae acquisition debt on behalf of the buyer. The finance team was led by Brian Eisner and Levi Brooker, who commented, “In spite of the challenges posed by the pandemic, Walker & Dunlop was extremely pleased to deliver a long-term interest only loan at a historically low interest rate.”

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