Madison Chase Apartments and Starwood’s Barry Sternlicht (Credit: Apartments.com and Wikipedia)
Starwood Property Trust bagged another rental complex as part of a $600 million acquisition of affordable housing units in Florida, property records show.
The Greenwich, Connecticut-based investment firm paid $27.85 million for the 230-unit Madison Chase Apartments at 1096 Madison Chase, near West Palm Beach in unincorporated Palm Beach County. The deal breaks down to about $121,000 per apartment.
The seller, Saddlebrook at Palm Beach, is an affiliate of Orlando-based AGPM. The company owns and operates 9,130 affordable apartment communities through various partnerships, according to its website.
In addition to Madison Chase, Starwood is buying 28 apartment complexes in Orlando, Lakeland, Lake Worth, Windermere, Melbourne and Palmetto, according to a press release. The majority of the 6,185 units were in Orlando and the entire portfolio sale is expected to close by the second quarter of this year.
Records show Starwood financed the deal with a $21.55 million mortgage from Wells Fargo and a $2.37 million loan from the Florida Housing Finance Corp.
Built in 2001, Madison Chase Apartments sits on 46 acres of land and features one-, two- and three-bedroom apartments.
Starwood began investing in affordable housing apartments in 2015, when it bought a 31-property portfolio of low-income multifamily units for $563.5 million.