Starwood Capital Group forms OZ JV with Holland Partner Group

Starwood Capital Group has formed a joint venture with Holland Partner Group to acquire and develop a class A multifamily project, 550 Harborfront, in San Pedro, Calif., an emerging coastal neighborhood in the South Bay of Los Angeles.

Starwood and Holland expect to complete the opportunity zone development in the spring of 2020, which will consist of 375 units.

“We are excited by the opportunity to develop the first Class A multifamily property in San Pedro since 2008,” said David Baker, senior vice president at Starwood Capital. “550 Harborfront is well positioned to capture demand given its coastal location and accessibility, over $1 billion of ongoing investment into the adjacent waterfront and ports, and relative affordability in the context of persistent housing shortages and rising rents in Los Angeles’ core infill neighborhoods.”

Anthony Balestrieri, senior vice president and head of Starwood’s opportunity zone investment business, added, “The Los Angeles multifamily market is among the strongest in the United States and San Pedro in particular stands to benefit from its favorable supply/demand fundamentals. San Pedro’s Opportunity Zone designation has accelerated investment into the neighborhood, which we expect to grow. As Starwood Capital grows its Opportunity Zone investment portfolio we will continue to identify attractive investment opportunities and create value for our investors.”

The joint venture follows Starwood’s launch of its first opportunity zone project in Bronx, N.Y.