Starwood Capital Group Acquires 11 Master-Planned Communities in Texas from Hines

Rhea-AI Summary

Starwood Capital Group and Land Strategies Management have completed an $800 million acquisition of 11 master-planned communities in Texas from Hines. The portfolio includes over 16,000 residential lots and 600+ acres of commercial land across Dallas, Houston, and Austin markets.

The communities are strategically located in high-growth submarkets with strong homebuilder activity. The Dallas portfolio includes Wildflower Ranch, Creekside, Aster Park, Northspur, Myrtle Creek, Furst Ranch, and Redden Farms. Houston features Brookewater, Creekhaven, and Wildrye, while Austin includes Mirador.

The acquisition aligns with Starwood Capital's strategy of investing in mature communities with substantial completed infrastructure and active lot sales to over 30 homebuilders. The deal involves multiple partners including Trez Capital, Caravel Ventures, Bloomfield Homes, Sumitomo Forestry America, Estein USA, and GMcivil.

Positive

• $800 million acquisition strengthens presence in top US housing markets
• Portfolio includes 16,000+ residential lots and 600+ acres of commercial land
• Communities are in advanced development stages with major infrastructure completed
• Active lot sales to over 30 homebuilders indicate strong market demand
• Strategic presence in three of the ten largest US new home markets

Negative

• Significant capital outlay of $800 million requires substantial return on investment
• High concentration risk in Texas market
• Development completion and sales execution risks remain

Insights

Real Estate Investment Analyst

Starwood Capital Group's $800 million acquisition of 11 master-planned communities from Hines represents a significant strategic investment in the Texas residential market. With 16,000+ remaining residential lots and 600+ acres of commercial land across Dallas, Houston, and Austin, this portfolio provides immediate scale in three of America's fastest-growing housing markets.

The transaction's structure is particularly noteworthy - these communities are in advanced development stages with major infrastructure already completed and active sales to over 30 homebuilders. This substantially reduces development risk while providing immediate cash flow opportunities. The mature state of these assets suggests Starwood can begin recognizing returns relatively quickly compared to raw land acquisitions.

What makes this acquisition especially valuable is its timing within the housing cycle. Despite higher interest rates, Texas continues experiencing strong population inflows driven by corporate relocations and comparative affordability. The portfolio's positioning in high-growth submarkets with established homebuilder relationships provides defensive characteristics even amid broader market fluctuations.

For Starwood Capital, this transaction aligns perfectly with their stated strategy of acquiring well-located master-planned communities in major new home markets. The $800 million price tag indicates confidence in the long-term residential land fundamentals of these Texas markets, where housing supply constraints continue despite strong demand drivers.

MIAMI and HOUSTON, April 4, 2025 /PRNewswire/ -- A joint venture between an affiliate of Starwood Capital Group, a global private investment firm with a primary focus on real estate, and an affiliate of Land Strategies Management (DBA Starwood Land), announced today that it has completed the acquisition of a portfolio of master-planned communities in Texas from Hines, a global real estate investment manager, for approximately $800 million. 

The acquisition comprises 11 master-planned communities that are in advanced stages of development, with more than 16,000 remaining residential lots and over 600 acres of commercial land, across three of the ten largest U.S. new home markets: Dallas, Houston, and Austin. The communities are all located in high-growth submarkets with established track records of strong homebuilder activity. The developments include: Dallas – Wildflower Ranch, Creekside, Aster Park, Northspur, Myrtle Creek, Furst Ranch, and Redden Farms; Houston – Brookewater, Creekhaven, and Wildrye; Austin – Mirador.

"This is a high-quality portfolio created by a first-class investment manager and developer, and we plan to build upon the excellent work Hines has completed to-date and bring the development vision for these communities to fruition," said Mike Moser, CEO of Starwood Land. "We look forward to engaging with homebuilders to expand the communities' offerings."

Anthony Murphy, Managing Director at Starwood Capital, said, "This investment continues Starwood Capital's strategy of acquiring well-located master-planned communities in the largest new home markets to capitalize on compelling long-term residential land fundamentals. It presents a rare opportunity to acquire a large portfolio of mature communities with major infrastructure substantially completed and active lot sales to over 30 homebuilders."

Ray Lawler, Managing Partner, Head of Americas at Hines said: "This transaction showcases the deep investment appetite for well-located, master- planned communities that deliver much-needed housing to high-growth markets, and capitalizing on tailwinds in the living sector. Single-family housing, and the living sector generally, is a high-conviction investment theme for Hines globally. We are delighted with the success of this deal, which enables us to continue to build our market-leading Living portfolio across the world, on behalf of our clients."

Additional involved partners with Hines include Trez Capital – who is a partner on nine of the communities –Caravel Ventures, Bloomfield Homes, Sumitomo Forestry America, Estein USA, and GMcivil.

"These are exceptional developments in high-growth Texan markets, and Hines has done an outstanding job delivering well-positioned, high-quality communities," said John D. Hutchinson, co-CEO and global head of origination at Trez Capital. "We look forward to seeing these communities continue to thrive under Starwood's stewardship."

About Starwood Capital Group

Starwood Capital Group is a private investment firm with a core focus on global real estate. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have 5,000+ employees. Since its inception in 1991, Starwood Capital Group has raised over $80 billion of capital, and currently has ~$115 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $98 billion of capital since inception and manages a portfolio of over $26 billion across debt and equity investments. Over the past 32 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at www.starwoodcapital.com.

About Hines

Hines is a leading global real estate investment manager. We own and operate $90.1 billion¹ of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 30 countries draw on our 68-year history to build the world forward by investing in, developing, and managing some of the world's best real estate. To learn more, visit www.hines.com and follow @Hines on social media.

¹Includes both the global Hines organization and RIA AUM as of December 31, 2024.

Media Contacts:

H/Advisors Abernathy

Tom Johnson: tom.johnson@h-advisors.global, (212) 371-5999
Dan Scorpio, dan.scorpio@h-advisors.global, (646) 899-8118

 

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SOURCE Starwood Capital Group

FAQ

What is the value of Starwood Capital's Texas master-planned communities acquisition?

Starwood Capital acquired the portfolio of 11 master-planned communities in Texas from Hines for approximately $800 million.

How many residential lots are included in Starwood's Texas communities acquisition?

The acquisition includes more than 16,000 remaining residential lots and over 600 acres of commercial land.

Which Texas cities are included in Starwood's master-planned communities portfolio?

The communities are located in Dallas, Houston, and Austin, three of the ten largest U.S. new home markets.

How many homebuilders are currently active in Starwood's newly acquired Texas communities?

The communities have active lot sales to over 30 homebuilders.

What are the names of the master-planned communities acquired in Dallas?

The Dallas communities include Wildflower Ranch, Creekside, Aster Park, Northspur, Myrtle Creek, Furst Ranch, and Redden Farms.