Affordable Housing Portfolio Refi Secured by Starwood

Affordable housing portfolio refinanced as Starwood REIT secures $1.7B in Freddie Mac loans through Walker & Dunlop, covering 12,955 units.

April 17, 2026

Valerija I.

Starwood REIT completed a $1.7B refinancing of 12,955 affordable housing units.
Walker & Dunlop arranged the 10-year Freddie Mac-backed loans.
The portfolio spans 52 properties across 10 states, with a focus on high-growth, high-migration markets.
The transaction highlights rising investor demand for affordable housing.

Key Takeaways

Refinancing Details

Starwood Real Estate Income Trust (Starwood REIT), part of Miami-based Starwood Capital Group, secured a $1.7B refinancing. The deal covers a national portfolio of 12,955 affordable and workforce housing units. According to Commercial Observer, Walker & Dunlop originated the loans. These 10-year loans carry backing from Freddie Mac. As a result, Starwood can recapitalize 52 multifamily properties. These assets span across 10 states.

The assets were originally acquired from Strata Equity Group at the end of 2021 in a deal totaling over 15,000 units. Since then, the portfolio has been streamlined, including select property dispositions, to create its current footprint.

Investor Momentum Builds

Industry momentum behind affordable housing is growing as institutional capital seeks stability and long-term demand. Starwood’s refinancing comes amid a broader wave of investment in workforce and affordable housing, with major lenders and funds—including Citi and Bridge Housing—rolling out sizeable initiatives targeting this segment. This trend aligns with recent net lease activity, where Starwood expanded through a multi-billion dollar portfolio acquisition, signaling broader capital deployment across sectors.

Walker & Dunlop’s institutional advisory team, led by Dustin Stolly, structured the complex Freddie Mac financing, which exceeded $1.7B—surpassing the agency’s total securitized loan volume in Q1 2026.

Why It Matters

Starwood REIT now concentrates its affordable housing portfolio in fast-growing markets like Georgia, Tennessee, and North Carolina. This positioning supports long-term performance. About a quarter of the portfolio ties to affordable housing. This focus reinforces its commitment to workforce communities. It also delivers value to both lenders and investors.

The refinancing underscores a trend of sophisticated institutional players deepening their focus on affordable and workforce housing assets, particularly in high-value, high-migration locations.