DEAL OF THE WEEK

Armof investment firm adds a bundle of local apartment complexes

An affiliate of global private investment firm Starwood Capital Group will gain more than a dozen apartment complexes in the Houston market with the acquisition of Milestone Apartments Real Estate Investment Trust.

The $2.85 billion deal, which equates to $120,000 per unit, is anticipated to close in the second quarter, according to a recent announcement.

Milestone Apartments REIT, which owns 24,000 apartment units in 78 complexes, has main offices in Dallas and Toronto. It manages more than 50,000 units, including many in partnership with Starwood. Its shares trade on the Toronto Stock Exchange.

With about 4,000 units, the Houston area is home to the company’s second-largest concentration of apartments after Dallas.

The local garden-style communities, built primarily in the 1980s: Bar Harbor, 2601 North Repsdorph; Brandon Oaks, 11111 Saathoff; Brookfield, 14230 Wunderlich; Central Park Regency, 11300 Regency Green Drive; Cimarron Parkway, 22022 Cimarron Parkway; Enclave at Cypress Park, 1822 Barker Cypress; Hidden Lake, 900 Henderson Ave.; Hunt Club at Pin Oak, 1550 Katy- Flewellen; Richmond Green, 9940 Richmond; Silverado, 1335 Silverado; The Huntley, 450 El Dorado; The Retreat at Eldridge, 2323 Eldridge Parkway; and The Villas at Shadow Creek, 2020 Business Center Drive, Pearland.

The portfolio is spread across 16 cities in the southeastern and southwestern United States. The acquisition will add to approximately 67,000 units Starwood owns in the Sun Belt states.

Milestone Apartments REIT is expected to continue managing the properties following the acquisition.