Starwood Property Trust Inc., a real estate investment trust with access to capital, lacked in-house management for its single-family rental homes. Waypoint Real Estate Group, one of the first large rental-house investors, was stymied this year when it tried raise money by going public. Now the two companies are getting together.
Blackstone Group LP, the largest U.S. landlord of single-family homes, is working with Deutsche Bank AG to sell $1 billion of securities tied to its properties, about twice the size of previous offerings, according to a person with knowledge of the plans.
Starwood Property Trust Inc. said it will spin off its single-family rental-home unit into a real estate investment trust headed by Waypoint Real Estate Group’s management division, which is being acquired in the deal.