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Starwood Capital Group buys office portfolio for $1.1 billion

Staff writer ▼ | April 2, 2015
Starwood Global Opportunity Fund X, Vanderbilt Partners and Trinity Capital Advisors joint venture has acquired a portfolio of Class A suburban offices properties from Duke Realty Corporation in an off-market transaction for approximately $1.1 billion.
Starwood Capital Group   An off-market transaction
Totaling 6.9 million square feet, the portfolio comprises 62 assets in Raleigh, NC, Nashville, TN, St. Louis, MO, and South Florida. The transaction also includes 57 acres of undeveloped land.

"We're very excited by this substantial investment in a terrific portfolio of office buildings in these important and growing markets in the United States. We expect the transaction to meet our return expectations through a combination of consistent cash flow and longer-term capital appreciation," said Mark Keatley, senior vice president at Starwood Capital Group.

"With this investment, we're buying a portfolio with significant current yield in strong suburban markets within high-growth cities," added Casey Wold, Managing Partner of Vanderbilt Partners.

"We believe that we are at an attractive point in the cycle to enter suburban office markets that are well-positioned for growth, and we will continue to seek out investments in the sector on an opportunistic basis," saidChristopher Graham, senior managing director and head of real estate acquisitions for the Americas at Starwood Capital Group.

Since its inception in 1991, Starwood Capital Group has acquired more than 60 million square feet of office properties around the world, and currently manages approximately 35 million square feet.