Barry Sternlicht’s Starwood Capital Group is close to an agreement to sell a portfolio of single-family rental homes to Invitation Homes Inc,
Thank you for reading this post, don't forget to subscribe!The transaction will include about 2,000 homes and each property will be valued at about $400,000, a source told Bloomberg, which first reported the story. The deal is not final and may not go ahead.
Bloomberg reported that if this happens, it would generate wealth for Starwood Real Estate Income Trust, which is facing redemptions. The REIT said in a March filing that it recognized an impairment charge of approximately $80 million on various single-family rental properties “due to the increased likelihood of near-term disposals.”
For Invitation Homes, the deal marks the return of Wall Street firms to the SFR market, as was highlighted by HousingWire in June. Bloomberg reported that the publicly traded company had more than $1.3 billion in unrestricted cash and undrawn credit facilities at the end of March, which could be enough to complete the deal without seeking new debt or equity.
in early June, Pretium Partners agreed to buy 4,000 DR Horton rental homes in a deal worth $1.5 billion.
