Starwood Capital Group (“Starwood Capital”), a leading global private investment firm, announced today that it has acquired through affiliated funds an 11-asset multifamily portfolio in the fast-growing Charlotte, N.C. and Raleigh, N.C. metropolitan regions. Terms of the transaction were not disclosed.
The acquired portfolio consists of nearly 3,000 high-quality and well-maintained garden-style residential units located throughout the attractive Charlotte and Raleigh metropolitan areas.
Properties in the portfolio have an average vintage of 1988, strong occupancy rates and offer affordable options for renters. Charlotte and Raleigh have seen strong household income and employment growth over the past several years, which are projected to continue to be well above the U.S. average. Assets in the portfolio further benefit from close proximity to highly ranked schools, attractive local amenities and major job centers.
“We are pleased to add these quality apartment communities in top-tier locations within these high-growth Sun Belt markets to our U.S. portfolio,” said Mark Keatley, Managing Director at Starwood Capital. “The Charlotte and Raleigh markets continue to generate strong housing demand amid substantial growth in population and employment opportunities, and we believe these underlying demographic trends will continue over time. Starwood Capital has a diverse track record of success in these markets and the acquisition of this portfolio at rents significantly below new construction will allow us to deliver a compelling value proposition to our renters while generating attractive returns for our investors.”
Charlotte and Raleigh are ranked among the top 10 U.S. markets for expected population and employment growth over the next five years, according to Nielson, and CBRE ranks both markets in the top 10 for absorption over the next five years. Both markets are home to a number of Fortune 500 companies and offer below-average costs of living compared to the broader United States, considerably below other large U.S. metros.