Starwood Capital Group has agreed to purchase a multifamily real estate investment trust, Milestone Apartments REIT, a deal that would add 24,000 apartment units to its portfolio, the companies said Thursday.
Starwood, a Greenwich, Connecticut-based private investment firm, plans to buy the Dallas-based company for about $1.3 billion in cash. Including debt, the deal is valued at about $2.6 billion, according to the announcement. The transaction is expected to be completed in the second quarter.
A spokesman for Starwood could not be reached for comment.
Milestone owns 78 garden-style apartment properties located in 16 major metropolitan markets throughout the south-east and south-west US. After the deal is complete, Starwood will own more than 109,600 units.
Starwood and Milestone have worked together previously: in October 2015, the companies teamed up to buy Landmark Apartment Trust, a southern US-focused multifamily REIT, in a deal valued at $1.9 billion. Under the deal, Starwood acquired 63 Landmark properties, while Milestone got 15 assets and also served as the property manager for Starwood’s part of the portfolio, according to an announcement at the time.
Just days after the Landmark deal was announced in 2015, Starwood said it would purchase over 23,000 apartments across five states from Equity Residential, a Chicago-based REIT, in a transaction valued at $5.4 billion.
Starwood manages $52 billion, according to its website. The firm is currently raising capital for both a new core-plus platform and its latest opportunistic fund, Starwood Opportunity Fund XI Global. It was unclear at press time through which vehicle Starwood would acquire Milestone.
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