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Starwood Real Estate Income Trust acquires Florida Office Portfolio

Starwood Real Estate Income Trust acquired in May the Florida Office Portfolio, a Class A office portfolio totaling 1.27 million square feet across 11 buildings in Jacksonville, Florida. The portfolio was acquired through an off-market transaction for a purchase price of approximately $231 million, excluding closing costs.

The portfolio is located within the top performing Deerwood Park submarket, which commands the highest asking rents and lowest vacancy rate in Jacksonville. Deerwood Park is an attractive destination for employers due its convenient access to both executive and workforce housing and its rich amenity base, anchored by North Florida’s most successful retail complex, St. Johns Town Center.

“The Florida Office Portfolio is another example of SREIT acquiring high-quality real estate in markets with strong population and job growth,” said John McCarthy, CEO and president of SREIT. “SREIT focuses on markets with strong growth dynamics because they drive occupancies, rents and values upward. We like Florida in particular because it led the nation in job growth in 2018. We were also attracted to the portfolio’s diversity of tenants, with more than 65% financially strong credit tenants including Fidelity Investments, The Adecco Group, and JP Morgan.”

With the closing of this acquisition, SREIT’s portfolio totals $770 million in total asset value across 26 properties.