Starwood Property Trust Inc. closed the second phase of its $600 million acquisition of a Florida affordable housing portfolio.
The mortgage real estate investment trust acquired 12 affordable housing communities, comprising 2,803 units, for $292.9 million in February, with a contingent consideration of $19.8 million.
The transaction was funded with cash on hand, $212.8 million of 10-year mortgage debt with a 3.81% fixed interest rate, and roughly 5.5 million class A units. The seller has the right to receive an additional 1.0 million class A units in the case of contingent events.
In December 2017, the company closed on the first phase of the transaction with the acquisition of eight communities encompassing 1,740 units for $156.2 million, including a contingent consideration of $10.8 million.
The board of directors also adjusted the calculation of the base management and incentive fees to consider subsidiaries' equity securities issued in exchange for properties as issued common stock, effective Dec. 28, 2017.
