Starwood Capital Group continues to extend its industrial holdings by one more acquisition transaction with EJM Growth. The worldwide personal funding agency not too long ago bought an 11-property assortment from EJM for a complete of $407 million, increasing its portfolio by roughly 2 million sq. ft in metropolitan Phoenix, in line with the Phoenix Enterprise Journal.
Eight of the Arizona buildings that are actually a part of Starwood’s portfolio are situated in Phoenix correct, in line with the identical publication, which cites actual property database Vizzda because the supply, whereas two are situated in Tolleson and the remaining property is sited in Tempe. The group of property contains 23910 N. nineteenth Ave. in Phoenix, and 407 N. 107th Ave. in Tolleson, which traded for $68.6 million and $60.8 million, respectively.
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CBRE pulled double responsibility within the transaction, representing each EJM and Starwood. The agency orchestrated the closing of the sale of the properties on September 28, 2021, contributing to essentially the most profitable quarter of commercial funding gross sales in Phoenix historical past.
In keeping with a report by Kidder Mathews, gross sales quantity within the third quarter of 2021 reached a file excessive of $1.2 billion because of almost 200 transactions, and the common worth per sq. foot soared to its highest-ever stage, $143 per sq. foot. “Traders and builders are extremely assured within the Phoenix market, because the aggressive benefit and development drivers are stronger than ever,” in line with the Kidder Mathews report.
One transaction at a time
Starwood’s acquisition of the group of 11 industrial property from EJM comes almost two months after the corporate introduced that Monmouth Actual Property Funding Corp. had rejected its managed affiliate’s all-cash acquisition proposal, a counteroffer to Fairness Commonwealth’s bid for the commercial REIT. An settlement would have left Starwood with Monmouth’s 24.9 million-square-foot portfolio of 122 industrial properties spanning 32 states.
In lieu of amassing a significant industrial footprint in a single fell swoop by way of a merger, Starwood seems to be quickly increasing its portfolio by way of a sequence of one-off transactions—and EJM is popping out to be a stable supply for the corporate. Earlier this 12 months, Starwood enhanced its presence within the thriving Phoenix market with the acquisition of the 312,400-square-foot Kyrene Commerceplex in Tempe from EJM in a $54.9 million deal. And the fruitful relationship extends past the Phoenix space, as Starwood additionally bought an EJM portfolio totaling roughly 490,000 sq. ft in Salt Lake Metropolis within the second quarter of 2021.