Barry Sternlicht’s Starwood Capital Group is nearing an agreement to sell a portfolio of single-family rental homes to Invitation Homes Inc.
The transaction would include roughly 2,000 homes and value the properties at about $400,000 each, one source told Bloomberg, which first reported the story. The deal hasn’t been finalized and may not go through.
If it does however, it would generate funds for Starwood Real Estate Income Trust, which is facing redemptions, Bloomberg reported. The REIT said in a March filing that it recognized a nearly $80 million impairment charge on various single-family rental properties “due to an increased probability of a near-term disposition.”
For Invitation Homes, the deal further illustrates the return of Wall Street firms to the SFR market, as highlighted by HousingWire in June. The publicly traded company had more than $1.3 billion in unrestricted cash and undrawn credit facilities at the end of March, which could be enough to complete a deal without seeking new debt or equity, Bloomberg reported.
In early June, Pretium Partners agreed to buy 4,000 D.R. Horton rental homes in a $1.5 billion deal.