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Starwood REIT Secures $1.7 Billion Freddie Mac Refinance for 52-Property Workforce Portfolio

The 10-year agency debt replaces short-term CMBS to support a longer hold on the affordable portfolio.

Overview

  • The 10-year Freddie Mac-backed package, reported Thursday by multiple outlets, refinances 52 properties with 12,955 workforce and affordable units across 10 states.
  • Bisnow describes the move as stabilizing for Starwood Real Estate Income Trust, which has curbed investor redemptions since 2022 and still faces a large backlog.
  • Walker & Dunlop originated and arranged the financing for the portfolio that SREIT bought from Strata Equity Group in 2021.
  • The collateral is smaller than in 2021 because SREIT sold assets in 2025, including properties in Parker, Colorado, Duluth, Georgia, and Kennesaw, Georgia.
  • SREIT previously used a $2 billion, two-year interest-only CMBS loan arranged by Citi, Deutsche Bank and Wells Fargo soon after the 2021 acquisition.