Starlight JV Pays $1.3B for 2 Multifamily Portfolios

Starlight Investments Multifamily Properties. Image courtesy of CNW Group/Starlight Investments

Starlight Investments, together with two global institutional partners, has formed the Sherrin Partnership to acquire two multifamily portfolios for a total of $1.3 billion. The two portfolios encompass around 4,600 units across 13 properties in markets with a high job and rental growth in the Southern and Western U.S.

Sherrin Partnership paid $600 million for Starlight U.S. Multifamily (No. 1) Core Plus Fund’s portfolio of seven Class A institutional-quality communities totaling 2,219 units. The deal provided all-cash consideration to unitholders of the fund. The partnership also acquired a six-property value-add and lease-up portfolio for $700 million concentrated in the Sun Belt region.

The Sherrin Partnership plans to focus on markets with a population of more than one million people that are expected to continue experiencing further demographic and economic growth.

Markets targeted by the partnership include Atlanta, Austin, Charlotte, Denver, Nashville and Phoenix. As the pandemic prompted residents and businesses to relocate from large metros to less-dense and more affordable cities, Western and Sun Belt markets will continue to see substantial growth in the near future.