Walker & Dunlop Secures $1.72 Billion Financing Deal for Starwood Capital Group
Walker & Dunlop, Inc. has successfully arranged $1.719 billion in loan financing to refinance a large portfolio of multifamily housing assets owned by Starwood Capital. The financing covers 12,955 housing units spread across 52 properties in 10 U.S. states, with a strong focus on workforce and affordable housing communities. The deal highlights both the scale of the transaction and the continued institutional interest in housing segments that cater to middle-income renters.
The refinancing was structured through Walker & Dunlop’s Capital Markets Institutional Advisory group on behalf of Starwood Real Estate Income Trust (SREIT), a publicly registered non-traded REIT sponsored by Starwood Capital. SREIT originally acquired the portfolio in 2021 as part of its broader strategy to invest in stable, income-generating residential assets located in high-growth markets.
The loans were originated as 10-year financing through Freddie Mac, one of the leading government-sponsored enterprises supporting housing liquidity in the United States. The use of agency financing underscores the emphasis on affordability and workforce housing, as Freddie Mac programs are often aligned with preserving and expanding access to reasonably priced rental housing.
According to Walker & Dunlop, the transaction required a high degree of coordination due to its size and complexity. The portfolio spans multiple states and includes a diverse mix of properties, each with its own operational and financial considerations. Successfully bringing together such a large refinancing package involved aligning underwriting standards, market assumptions, and capital structures across all assets.
Willy Walker, Chairman and Chief Executive Officer of Walker & Dunlop, emphasized the significance of the deal in demonstrating the firm’s capability to execute large-scale, institutional-grade financings. He noted that transactions of this magnitude demand close collaboration among bankers, underwriters, and lending partners. He also credited the leadership of Senior Managing Director Dustin Stolly and the broader team for managing the process efficiently and delivering a seamless execution in partnership with Freddie Mac.
Walker further highlighted the importance of client trust in completing complex transactions. He expressed appreciation for Starwood Capital’s confidence in Walker & Dunlop’s team, noting that the refinancing positions the portfolio—referred to as the Strata Portfolio—for continued performance and long-term stability. The deal is expected to enhance the financial flexibility of the assets while supporting their ongoing operations and maintenance.
The Walker & Dunlop team responsible for originating the loans included Dustin Stolly, Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, Michael Stepniewski, and Michael Ianno. Their combined expertise in multifamily finance and capital markets played a key role in structuring the transaction and securing favorable terms.
From Starwood Capital’s perspective, the refinancing aligns with its long-term investment strategy focused on workforce housing. Jonathan Pollack, President of Starwood Capital, reiterated the firm’s commitment to owning and supporting housing communities that serve essential workers and middle-income residents. He pointed out that a significant portion of the portfolio is located in high-growth and high-migration markets, where demand for rental housing remains strong.
Pollack expressed confidence in the long-term fundamentals of the portfolio, noting that demographic trends and population shifts continue to support occupancy and rent stability in these regions. He also acknowledged Walker & Dunlop’s role in successfully arranging the financing and facilitating access to capital through Freddie Mac.
The transaction comes at a time when the multifamily housing sector continues to attract significant investor interest, particularly in segments tied to affordability and workforce housing. Rising homeownership costs and limited housing supply have increased demand for rental units that are accessible to a broad range of income levels. As a result, institutional investors are increasingly allocating capital to these types of assets, viewing them as both socially impactful and financially resilient.
Walker & Dunlop remains one of the leading providers of capital to the U.S. multifamily market. In 2025 alone, the firm originated nearly $19 billion in agency loan volume, reflecting its strong relationships with government-sponsored enterprises such as Freddie Mac and Fannie Mae. Its ability to consistently deliver large-scale financing solutions has made it a key partner for institutional real estate investors.
Overall, the $1.719 billion refinancing of Starwood Capital’s portfolio underscores the continued strength of the multifamily sector and the importance of strategic partnerships in executing complex financial transactions. By securing long-term financing for a geographically diverse portfolio of workforce housing assets, Walker & Dunlop and Starwood Capital have reinforced their positions in a competitive and evolving market, while supporting the availability of housing for thousands of residents across the United States.
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