Starwood Real Estate Income Trust Buys Jacksonville Office Portfolio
The portfolio totals 1.27 million square feet of office space. SREIT is managed by Starwood REIT Advisors L.L.C., a subsidiary of Starwood Capital Group.
JACKSONVILLE, FL—Miami-based Starwood Real Estate Income Trust has purchased an 11-building office portfolio in the Deerwood Park submarket of the city in an off-market transaction for $231 million.
The portfolio totals 1.27 million square feet of office space. SREIT is managed by Starwood REIT Advisors L.L.C., a subsidiary of Starwood Capital Group. Starwood did not disclose the seller of the portfolio.
The Jacksonville Daily Record reports that in September 2016, Parkway Properties Inc. sold the Deerwood North, Deerwood South and JTB Center office properties for $195 million to TPG Capital, which is headquartered in Fort Worth, TX and San Francisco.
“The Florida office portfolio is another example of SREIT acquiring high-quality real estate in markets with strong population and job growth,” says John McCarthy, CEO and president of SREIT. “SREIT focuses on markets with strong growth dynamics because they drive occupancies, rents, and values upward.”
He adds, “We like Florida in particular because it led the nation in job growth in 2018. We were also attracted to the portfolio’s diversity of tenants, with more than 65% financially strong credit tenants including Fidelity Investments, The Adecco Group, and JP Morgan.”
With the closing of this acquisition, SREIT’s portfolio totals $770 million in total asset value across 26 properties.
Rebusinessonline reports that Wells Fargo provided a $135-million acquisition loan to SREIT, which it states owns 97% of the portfolio. Vanderbilt Office Properties will manage the properties.