Vancouver-based Trez Capital is part of a joint venture with global developer and investor Hines, which has sold a massive portfolio of 11 master-planned communities under development in Texas to a Starwood Capital-led group for approximately $1.15 billion (all figures Canadian unless noted).

Trez was a partner with Hines and several other firms on nine of the 11 communities which have been sold. Hines has acted as the developer of the communities, which are spread across three of the 10 largest U.S. new home markets, Dallas, Houston and Austin.

All are in “advanced stages of development” according to releases announcing the transaction by companies involved in the deal. They comprise over 16,000 remaining residential lots and over 600 acres of commercial land.

They are:

• Dallas – Wildflower Ranch, Creekside, Aster Park, Northspur, Myrtle Creek, Furst Ranch, and Redden Farms; 
• Houston – Brookewater, Creekhaven, and Wildrye; and 
• Austin – Mirador.

Additional partners involved with Hines on one or more of the developments were Caravel Ventures, Bloomfield Homes, Sumitomo Forestry America, Estein USA, and GMcivil.

Developments in high-growth markets

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

Starwood Capital Group and an affiliate of Land Strategies Management (DBA Starwood Land) comprise the buyer group.

Other than the overall transaction value, financial details have not been disclosed.

"This transaction highlights the strength of our strategic approach in identifying and executing high-quality real estate investments in key growth markets," Hutchinson was quoted as saying in the statement. "Our partnership with Hines has been instrumental in advancing these developments, and the sale to Starwood reflects the continued demand for well-located master-planned communities in today's evolving market."

One of Trez Capital's investment strategies has been to identify opportunities for both single-family lot development and multifamily housing in what it calls “high-demand regions supported by population and job growth” across North America. The firm prefers to execute on the strategy, then exit these development opportunities at opportune times.

"The equity program at Trez Capital continues to build momentum, driven by strong market fundamentals and sustained demand for housing," Sam Salloway, senior managing director, head of equity investments, said in Trez Capital’s release. "Years ago, we recognized the growing housing shortage in the U.S. Sunbelt and strategically decided to focus on residential real estate. 

“That foresight has positioned us well as migration trends, job growth and favourable economic conditions continue to fuel demand in tax-friendly, high-growth states. We remain committed to identifying data-driven investment opportunities in markets with strong fundamentals, with select development partners, ensuring the best possible outcomes for our investors."

Housing a "high-conviction" sector for Hines

Hines’ managing partner and head of Americas Ray Lawler also pointed to the appetite for well-located communities in his comments about the transaction.

“Single-family housing, and the living sector generally, is a high-conviction investment theme for Hines globally,” Lawler said in his own prepared statement. “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.”

Starwood Land CEO Mike Moser focused on his firm’s plans to continue developing the sites.

“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,” Moser said in his statement.

“We look forward to engaging with homebuilders to expand the communities’ offerings.”

About Trez Capital

Founded in 1997, Trez Capital is a diversified real estate investor and provider of commercial real estate debt and equity financing solutions in Canada and the United States. Trez Capital offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured mortgage investment funds, syndication offerings and real estate joint-venture investments; and provides property developers with flexible short- to mid-term financing.  

With offices across North America, Trez Corporate Group had over $5.7 billion in assets under management (as of Q4 2024) and has funded over 1,800 transactions totalling more than $20.5 billion since inception.  

About Hines

Hines is a global real estate investment manager, based in Houston, which owns and operates US$90.1 billion of assets across property types and on behalf of a diverse group of institutional and private wealth clients. 

The 68-year-old firm employs approximately 5,000 people in 30 countries, including Canadian operations based in Toronto.

About Starwood Capital Group

Starwood Capital Group is a Miami-based private investment firm with a focus on real estate. The firm and its affiliates maintain 16 offices in seven countries, and have over 5,000 employees. 

Since its inception in 1991, Starwood has raised over US$80 billion of capital, and has approximately US$115 billion of AUM. Through its funds and Starwood Real Estate Income Trust, the firm has invested in virtually every category of real estate. 

Starwood Capital also manages Starwood Property Trust, the largest commercial mortgage real estate investment trust in the United States, which has deployed over US$98 billion of capital since inception and manages a portfolio of over US$26 billion.