Starwood Acquires Two Miami-Dade Affordable Housing Portfolios for $63.8M
Starwood Acquires Two Miami-Dade Affordable Housing Portfolios for $63.8M
Starwood Asset Management, led by Barry Sternlicht, has expanded its footprint in South Florida through the acquisition of two affordable housing communities located in Miami-Dade County. The firm purchased the properties from Gatehouse Group for a combined total of $63.8 million, according to public property records.
The larger of the two transactions involved Magnolia Landing Apartments, situated in the Naranja neighborhood near the southern tip of the county. Starwood paid $34 million for the 150-unit asset, which was built in 2011. The property spans 4.8 acres and consists of 20 three-story buildings located at 25881 Southwest 143rd Court. The purchase price translates to approximately $226,660 per unit. To facilitate the deal, CBRE Group, Inc. secured a $23.8 million loan backed by Freddie Mac.
In a separate transaction, Starwood acquired the 160-unit Lafayette Square complex in Miami’s Little River neighborhood for $29.75 million. This high-density development is contained within a single 19-story building on a 1.2-acre site at 150 Northeast 79th Street. The price point for this asset was roughly $185,900 per unit. While the sale closed on the main building, the seller appears to have retained ownership of an adjacent 136-unit property.
Both assets were originally developed by Gatehouse Group, a Mansfield, Massachusetts-based firm. Lafayette Square was completed in 2008, followed by Magnolia Landing in 2011. These acquisitions come as major institutional investors continue to analyze the affordable housing sector for stability and yield potential.
What to watch
- Future debt financing strategies for similar multifamily assets involving government-sponsored enterprises.
- Starwood’s potential further expansion or disposition of assets in the Miami-Dade market.
- Upcoming financial disclosures from CBRE Group, Inc. regarding their capital markets activity.
Source: original release