GREENWICH, CONN. — Starwood Capital Group, a private investment firm, has acquired a portfolio of Class A suburban offices properties from Duke Realty Corp. in an off-market joint venture transaction valued at approximately $1.1 billion. A joint venture between Starwood Global Opportunity Fund X, Vanderbilt Partners and Trinity Capital Advisors acquired the portfolio.
“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,” says Mark Keatley, senior vice president at Starwood Capital Group. “We expect the transaction to meet our return expectations through a combination of consistent cash flow and longer-term capital appreciation.”
The acquisitions total 6.9 million square feet across 62 properties in Raleigh, Nashville, St. Louis and South Florida. The transaction also includes 57 acres of undeveloped land.
“With this investment, we’re buying a portfolio with significant current yield in strong suburban markets within high-growth cities,” says Casey Wold, managing partner of Vanderbilt Partners, a Chicago-based real estate investment manager.
Since its inception, Greenwich, Conn.-based 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.
“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,” says Christopher Graham, senior managing director and head of real estate acquisitions for the Americas at Starwood Capital Group.
Starwood Capital Group maintains 12 offices in six countries, and currently has more than 800 employees. The company has raised more than $31 billion of equity capital since its inception in 1991, and currently manages over $42 billion in assets.
— Haisten Willis