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Gaia Real Estate and Starwood Capital Group have sold a 9,500-unit apartment portfolio in the Sunbelt to PJ Portfolio investment. The duo purchased the portfolio in a Chapter 11 bankruptcy sale in 2012, and executed a value-add strategy on the dilapidated portfolio. Ultimately, the investment generated a 15x multiple return for investors after the 10-year hold.

The portfolio is located in growth markets throughout the Sunbelt region. Nearly half of the portfolio is in Dallas, while 19% is located in Phoenix; 8% in Atlanta; 8% in Houston; 7% in Ft. Lauderdale; 6% in Corpus Christi; 5% in Nashville and 3% in Orlando. At the time of purchase, the portfolio had 20% vacancy rate and 8% of the units were not in leasable condition. Gaia Real Estate and Starwood Capital Group infused tens of millions into the portfolio, stabilizing the portfolio and bringing vacancy to 5%.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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