A joint venture between affiliates of Starwood Capital Group and Land Strategies Management has acquired a diverse portfolio of residential and commercial real estate assets concentrated in top homebuilding markets throughout Texas, the Southeast and the Western United States. The duo paid $232 million to the Forestar Group for the portfolio. The assemblage consists mostly of 4,800 fully entitled residential lots spread across 20 projects in Dallas, Austin, San Antonio, Houston, Charlotte, Nashville, Raleigh, and Denver. The acquisition includes a joint venture interest in an existing multifamily community located in Katy, TX, additional commercial land and 730 acres of unentitled land in Southern California. Land Strategies Management will manage the assets.
“The acquisition of a portfolio of this size and quality in many of our favored growth markets is a rare opportunity in the residential land sector. Our extensive land development experience and longstanding relationships with both Forestar and D.R. Horton allowed us to execute this transaction quickly, efficiently, and on an off-market basis,” said David Baker of Starwood Capital Group. “Ninety-five percent of this portfolio is concentrated in markets with less than four months of resale supply while housing starts remain well below long-term averages.”
