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The Real Deal Los Angeles

Starwood sells $835M multifamily portfolio to CapitaLand

The 16 properties, including 3 in the LA area, total nearly 4K units
By Dennis Lynch | September 20, 2018 12:00PM

Starwood Capital Group CEO Barry Sternlicht, CapitaLand Limited CEO Lee Chee Koon, and Marquessa Villas in Corona, CA

CapitaLand has touched down in the United States multifamily market in a big way, courtesy of Starwood Capital.

The Singapore-based investment firm acquired an $835 million portfolio of 16 properties across the U.S. from Miami Beach-based Starwood. The portfolio includes 3,787 residential units at a price of around $220,000 per unit.

CapitaLand announced the deal Thursday but did not disclose the seller. Records show the properties are owned by entities tied to Starwood. Starwood could not be reached for comment.

The portfolio includes three properties in the Los Angeles area that total 1,144 units. The other 13 properties are spread across three other cities: Seattle, Denver and Portland, Oregon.

CapitaLand has plans to renovate or otherwise improve the properties and said it intended to grow the portfolio. The company said it could spin off some of the assets into investment vehicles or partnerships, according to a release that accompanied the announcement.

The purchase is a big move for Capitaland’s president and CEO, Lee Chee Koon. The 43-year-old is on his fourth day at the helm of the $93 billion firm. CapitaLand’s holdings include five real estate investment trusts listed in Singapore.

Its core markets are its own island-nation and China. But the company also owns four hotels in New York City. Those include the Sheraton Tribeca at 350 Canal Street and the DoubleTree by Hilton Hotel New York at 431 W. 36th Street. Capitaland also owns one hotel in California, in Sunnyvale.