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Starwood JV to invest $150m in Houston residential market

Starwood Land Ventures, an affiliate of the private equity real estate firm Starwood Capital Group, is set to take advantage of the credit squeeze by targeting residential land deals, developments and homebuilders in Houston.

Starwood Land Ventures has formed a $150 million (€95 million) joint venture with Houston developer Riverway Properties to target residential land developments and homebuilders in the Texas city.

The Starwood Capital Group-sponsored firm, based in Sarasota, Florida, said the current credit climate was creating opportunities for private equity real estate firms to acquire residential developments as well as [need verb, offer private equity?] private equity to developers and purchase homebuilders’ debt.

The joint venture, to be called RiverStar Capital, would invest up to $150 million over the next several years, Starwood said in a statement. “The timing is excellent,” Mike Moser, president of Starwood Land’s east region, added.

RiverStar is expected to “buy and hold” completed residential developments, as well as provide equity and loans to other developers, and purchase debt from lenders. Riverway Properties said they expected Houston to continue to grow in terms of jobs and population.

Starwood Land, primarily funded by Starwood Capital, focuses on US land acquisition, development and financing. Earlier this month, Starwood Land hired former Lennar Corporation executive Cory Boydston as senior vice president to lead the firm's efforts with lenders and land bankers. Starwood Capital has also launched another affiliate, Starwood Infrastructure Finance, to target public real estate infrastructure bonds.