Starwood REIT forms joint venture with Apollo in USD 1.02 billion affordable housing deal
APO•Proceeds to reduce debt and support cash flow
Proceeds are earmarked to repay a large portion of Starwood’s credit facility, cutting interest expense and lifting operating cash flow.
The structure includes a guaranteed minimum annual yield to Apollo that steps up over time, paid by Starwood. Starwood holds a call option from years five to 10; the redemption price targets a capped 7% IRR for Apollo.
Joint venture covers about 120 affordable housing properties
Starwood Real Estate Income Trust closed a joint venture with Apollo Global Management on Aug. 3, 2026 covering about 120 U.S. affordable housing properties.
Apollo invested USD 1.02 billion for Class B units equal to 41.5% of equity; Starwood kept 58.5% plus operational control.
