Starwood picks up Homestead rentals as part of $600M acquisition

Starwood also bought apartment complexes in Orlando, Lakeland, Lake Worth, Windermere, Melbourne and Palmetto

Jan.January 10, 2018 12:30 PM

Homestead Colony Apartments and Starwood’s Barry Sternlicht (Credit: and Wikipedia)

Starwood Property Trust snapped up a rental complex in Homestead as part of a $600 million acquisition of affordable housing units in Florida, property records show.

The Greenwich, Connecticut-based investment firm paid $34.35 million for the Homestead Colony, a 312-unit development at 800 East Mowry Drive. Starwood affiliate SPT Dolphin Homestead Colony paid about $110,100 per apartment.

The seller, Homestead Colony Limited Partnership, is tied to Riverstone Residential Group, which Greystar acquired in 2015.

Homestead experienced some of the fastest-growing rent increases, according to a recent Zumper report. As of late last year, rents in Homestead rose by 15.1 percent year-over-year to $1,070 for a one-bedroom.

In addition to Homestead Colony, Starwood is buying 28 apartment complexes in Orlando, Lakeland, Lake Worth, Windermere, Melbourne and Palmetto, according to a press release. The majority of the 6,185 units were in Orlando and the entire portfolio sale is expected to close by the second quarter of this year.

Starwood financed the deals with a $116.75 million mortgage from Wells Fargo, records show.

The firm began investing in affordable housing apartments in 2015, when it bought a 31-property portfolio of low-income multifamily units for $563.5 million.

Related Article

Rent reform is propelling a new wave of New York and California investors to Miami (Credit: iStock)

Rent reform in New York, California propels new wave of multifamily investors to Miami

Clockwise from left: 401 Southwest 17th Avenue, Alfonso Jaramillo, and Andros Sarduy 

Beraja family picks up Little Havana apartments

Greg Pinkalla and ORA Flagler Village Apartments (Credit: Google Maps)

Fairfield Residential sells new Flagler Village apartments for $92M

NextEra Energy CEO James Robo and the property off the Florida Turnpike at Southwest 261st Street (Credit: Facebook and Google Maps)

FPL buys 109 acres near Homestead for natural gas facility

The Wynwood property and David Edelstein

W South Beach owner gobbles up more land for Wynwood resi project

Howard Cohe of Atlantic | Pacific and downtown Miami (Credit: iStock)

Atlantic | Pacific closes $140M portion of multifamily fund

From left: Mark Okada and James Dondero

REIT to pay $322M for sprawling Pembroke Pines apartment complex

From left: Jacob Serure, Elliot Shainberg, Deme Mekras, and Aaron Kurlansky with California Club Apartments

Coral Springs investor buys apartment complex near Aventura