Starlight Launches $1.3B Acquisition Drive
- Aug 01, 2017
Starlight Investments formed a partnership with two undisclosed institutional investors to acquire $1.3 billion of new Class A multifamily properties in the United States. The partnership plans to hunt for garden-style properties in Atlanta, Austin, Dallas, Denver, Orlando, Phoenix and Tampa.
More specifically, the partners will target the communities in suburban markets developed in 2012 or later. The target submarkets will be within high-growth metros that demonstrate rental income growth potential because of positive multifamily fundamentals, such as population, economic and employment growth, according to the firm.
Growing renter pool
A privately held Toronto-based company, Starlight is no stranger to this kind of multifamily property. Since 2013, Starlight U.S. Multi-Family has focused on buying garden-style communities in the southern U.S., acquiring more than $1.6 billion of assets in that time.
According to Starlight, positive migration, job growth and a continued shift away from homeownership have added about 18 million Americans to the renter pool in recent years. The investment firm expects the trend to continue.
“The newly formed partnership further validates Starlight’s U.S. multifamily strategy since inception,” said Daniel Drimmer, CEO & president. Starlight U.S. Multi-Family’s portfolio currently consists of more than 10,000 multifamily units across the southern U.S. Starlight Canadian Multi-Family holds 24,000 units in Canada.