Starwood Buys Equity Residential Apartments for $5.4 Billion
Digested from Starwood Buys Equity Residential Apartments for $5.4 Billion
Bloomberg (10/26/15) Larsen, Ross
Starwood Capital Group LLC is acquiring its biggest non-hotel property by purchasing 23,262 homes from Equity Residential for $5.4 billion. That equates to $230,634 per unit. The homes are located in 72 communities in South Florida; Seattle; Denver; Washington, D.C.; and California.
This is part of a strategy to expand Starwoods influence in the growth market of multifamily housing. The company has already purchased 44,538 units within the past 12 months, and its Waypoint Residential Trust merged with Colony American Homes in September, resulting in an organization with a combined portfolio of more than 30,000 units.
Equity Residential will pay out proceeds to investors through a special dividend of $9 to $11 per share. The company is looking to offload another 4,728 apartment homes in 2016.