At a glance
- The partnership is expected to be seeded with a $450 million portfolio of Trez-originated land loans and will target more than $1 billion in annual originations.
- Trez Capital originates the loans; Starwood supplies institutional capital and its investment platform.
- For allocators, Trez gains institutional capital to support more than $1 billion in annual land originations, with Trez still originating the loans.
Starwood Capital Group and Trez Capital have formed a partnership to originate residential land acquisition and development loans for single-family communities across the United States, IREI reported Nov. 3. The partnership is expected to be seeded with a $450 million portfolio of Trez-originated land loans and will target more than $1 billion in annual originations. Terms were not disclosed.
Trez Capital originates the loans; Starwood supplies institutional capital and its investment platform.
For allocators, Trez gains institutional capital to support more than $1 billion in annual land originations, with Trez still originating the loans. A fund selector comparing Trez land credit with other private real estate debt strategies is now sizing a platform with a partner behind it rather than a single manager's balance sheet.
As Private Wealth Daily previously reported, Starwood hired Blackstone's Eglit in September to scale a $10 billion debt book. Land acquisition and development lending sits earlier in the capital stack than lending on finished homes. Repayment is typically tied to lot sales to builders rather than rents.
Reported by the Real estate debt desk from IREI and Private Wealth Daily archive. Published . Corrections