GREENWICH, CT—Starwood Capital Group and Equity Residential have closed on a deal for 23,262 apartment units. First announced this past October, the $5.365-billion sale represents about one quarter of EQR's portfolio. In related news, the sale of Landmark Apartment Trust to a partnership of Starwood Capital and Milestone Apartment REIT closed on Wednesday.

Both deals, originally announced within a few days of one another, are part of a massive scaling-up of Starwood Capital's multifamily presence. When Starwood Capital announced the EQR acquisition, the company noted that it had acquired or had agreed to acquire more than 67,800 apartment units over the preceding 12 months, including the EQR portfolio and its share of Landmark's holdings.

"The size of this transaction underscores our conviction in multifamily housing's continuing ability to offer superior risk-adjusted returns," Barry Sternlicht, chairman and CEO of Starwood Capital, said this past October. "The strong underlying demographics for apartments and positive leverage—resulting in robust cash-on-cash yields—make this portfolio a very attractive investment."

EQR said Wednesday morning that the sale of 71 of the 72 apartment communities to Starwood Capital had closed on Tuesday, with the remaining sale expected to close later on Wednesday. Comprising a mix of mid-rise and garden-style apartment buildings and located mainly in suburban markets, the portfolio's assets are spread across five states, with major concentrations in South Florida, Denver, the Washington, DC metro area, Seattle and the Inland Empire.

Neal, Gerber & Eisenberg LLP served as EQR's legal advisor on the sale to Starwood Capital. Kirkland & Ellis LLP and Paul Hastings LLP served as Starwood's legal advisors on the deal.

The Landmark Apartment sale of apartments across eight Sunbelt states continues a run of recent privatizations in the REIT sector, with the Richmond, VA-based REIT being taken private for $1.9 billion in cash, including the assumption of debt. A controlled affiliate of Starwood Global Opportunity Fund is acquiring Landmark's ownership interest in 63 apartment communities totaling 19,615 units. Dallas-based Milestone will take control of 4,172 units across 15 properties, and will serve as property manager for Starwood's portion of the portfolio.