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Starwood Capital Group acquires opportunity zone development in Austin
Real Estate - JUNE 24, 2019

Starwood Capital Group acquires opportunity zone development in Austin

by Released

Starwood Capital Group has reached an agreement to acquire and develop a 342-unit garden-style multifamily project in East Austin, Texas.

“We are thrilled to add this development to Starwood’s growing Opportunity Zone portfolio, and we are excited to expand our footprint in the attractive Austin market,” said Anthony Murphy at Starwood Capital Group. “Austin has experienced significant population growth and positive demographic trends, and we believe East Austin presents an attractive opportunity to meet the growing demand for high-quality housing with Class A amenities and finishes. With convenient access to Austin’s expanding job centers and entertainment district, this project will appeal to a wide pool of renters and will be a valuable addition to the Starwood portfolio.”

Starwood expects to complete the opportunity zone development by spring 2020.

East Austin is one of Austin’s fastest growing submarkets and, with significant recent development driven by an influx of young professionals, has transformed into one of the region’s most desirable neighborhoods.

“We believe the East Austin submarket is uniquely positioned to continue to grow, due to its proximity to the CBD, and will benefit from strong supply/demand fundamentals,” said Anthony Balestrieri, senior vice president and head of Starwood Capital Group’s Opportunity Zone investment business. “The development at 500 U.S. Highway 183 S. is representative of the growth-focused investments Starwood Capital intends to continue targeting across our Opportunity Zone business. We look forward to continuing to grow our Opportunity Zone investment portfolio as we identify attractive investment opportunities to create value for our investors.”

It is located near Austin’s central business district (CBD), entertainment district and international airport. It is considered one of the few sites in East Austin that can accommodate garden-style apartments, which mimic single-family living and are in high demand from prospective tenants. The project’s amenities will include a club house, fitness center and pool with cabanas, and units will feature quartz countertops and stainless steel appliances.

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