Starwood Capital Group Purchases Two Apartment Complexes in North Carolina for $40.7 Million

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Mar 22, 2010, 08:30 ET

GREENWICH, Conn., March 22 /PRNewswire/ -- Starwood Capital Group, a leading private investment firm, announced today that it has completed the acquisition of two residential properties in Cary, North Carolina for a combined purchase price of $40.7 million. The two properties, Woodbridge and Hidden Oaks, are located across the street from each other in the prominent Raleigh, North Carolina suburb. The deal, which was funded through Starwood Opportunity Fund VIII, was completed in partnership with Somerset Partners.

The acquisition, which closed on March 15, includes 788 units, averaging approximately 900 square feet each. The properties were completed in between 1987 and 1995. Starwood Capital and Somerset Partners have secured 10-year financing for the properties from Freddie Mac at 5.78 percent. Starwood and Somerset plan on renovating the property amenities, as well as implementing various capital improvements to unit interiors and building exteriors.

Chris Graham, Managing Director, said, "We are excited about this transaction, which is consistent with our strategy of buying quality assets at substantial discounts to replacement cost with positive leverage in place. Starwood Capital has a long history of successfully owning and managing high-growth potential assets such as these and we look forward to working with our partners at Somerset to help both of these properties realize their full potential."

Starwood and Somerset were advised by Brush Island Capital, LLC, while CW Capital helped arrange the financing.

About Starwood Capital Group Global, LLC

Starwood Capital is a private, U.S.-based investment firm with a core focus on global real estate. Since the group's inception in 1991, the firm, through its various funds, has invested more than $6 billion of equity capital, representing $21 billion in assets. Starwood currently has approximately $14 billion of assets under management. Starwood maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C., London, Mumbai and Tokyo. Starwood has invested in nearly every class of real estate on a global basis, including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets. Starwood and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets.

SOURCE Starwood Capital Group