A joint venture between an affiliate of Starwood Capital (a global private investment firm with a primary focus on real estate) and an affiliate of Land Strategies Management (DBA Starwood Land) announced that it has completed the acquisition of a portfolio of master-planned communities in Texas from Hines (a global real estate investment manager) for about $800 million.
This deal comprises 11 master-planned communities in advanced stages of development, with over 16,000 remaining residential lots and over 600 acres of commercial land, across three of the ten largest U.S. new home markets: Dallas, Houston, and Austin.
These communities are located in high-growth submarkets with established track records of strong homebuilder activity. The developments include: Dallas – Wildflower Ranch, Creekside, Aster Park, Northspur, Myrtle Creek, Furst Ranch, and Redden Farms; Houston – Brookewater, Creekhaven, and Wildrye; Austin – Mirador.
Additional involved partners with Hines include Trez Capital, which is a partner in nine of the communities, Caravel Ventures, Bloomfield Homes, Sumitomo Forestry America, Estein USA, and GMcivil.
KEY QUOTES:
“This is a high-quality portfolio created by a first-class investment manager and developer, and we plan to build upon the excellent work Hines has completed to-date and bring the development vision for these communities to fruition. We look forward to engaging with homebuilders to expand the communities’ offerings.”
- Mike Moser, CEO of Starwood Land
“This investment continues Starwood Capital’s strategy of acquiring well-located master-planned communities in the largest new home markets to capitalize on compelling long-term residential land fundamentals. It presents a rare opportunity to acquire a large portfolio of mature communities with major infrastructure substantially completed and active lot sales to over 30 homebuilders.”
- Anthony Murphy, Managing Director at Starwood Capital
“This transaction showcases the deep investment appetite for well-located, master- planned communities that deliver much-needed housing to high-growth markets, and capitalizing on tailwinds in the living sector. Single-family housing, and the living sector generally, is a high-conviction investment theme for Hines globally. We are delighted with the success of this deal, which enables us to continue to build our market-leading Living portfolio across the world, on behalf of our clients.”
- Ray Lawler, Managing Partner, Head of Americas at Hines
“These are exceptional developments in high-growth Texan markets, and Hines has done an outstanding job delivering well-positioned, high-quality communities. We look forward to seeing these communities continue to thrive under Starwood’s stewardship.”
- John D. Hutchinson, co-CEO and global head of origination at Trez Capital
