Starwood Capital Group, Trez Capital Form $450 Million Residential Land Lending Partnership

Starwood Capital Group and Trez Capital announced Nov. 3 that they have entered into a strategic partnership to originate residential land acquisition and development loans for single-family communities across the United States. The partnership is expected to be seeded with a $450 million portfolio of loans originated by Trez Capital and targets more than $1 billion in annual originations, the firms said.

Partnership Structure and Roles

The arrangement pairs Starwood Capital's institutional capital and investment platform with Trez Capital's residential land financing expertise. The partnership will expand Trez Capital's lending capacity and further scale its established residential land development financing platform. For Starwood Capital, it provides the opportunity to finance land acquisition and development, complementing its long-standing track record in residential land investments.

Starwood Capital contributes institutional capital and real estate investment expertise, while Trez Capital contributes origination, underwriting, loan servicing and asset management capabilities.

The two firms said they believe they will be positioned to capitalize on structural housing supply imbalances and continued residential demand across the U.S., emphasizing markets with sustained population growth, employment diversity and investment opportunity.

Executive Comments

"Trez Capital has a strong track record in U.S. residential land lending, and we look forward to leveraging our collective strengths through this relationship," said Anthony Murphy, managing director at Starwood Capital. "Bringing together Starwood's institutional capital, deep expertise in real estate financing and master-planned community development with Trez Capital's capabilities in residential land financing will uniquely position us to capitalize on sector tailwinds as a premier lending platform."

John D. Hutchinson, co-chief executive officer and global head of origination at Trez Capital, said: "This strategic partnership represents a significant endorsement of Trez Capital's financing expertise. Combining Starwood's institutional investment capabilities with Trez Capital's origination, underwriting, loan servicing and asset management platform will enable us to scale our U.S. residential land development lending business significantly."

John Maragliano, Trez Capital co-chief executive officer and chief financial officer, said the partnership "represents an important step in Trez Capital's strategy to expand our institutional relationships," adding that it "will deliver additional institutional depth and enhanced financing capabilities, while supporting stronger returns and liquidity for our investors."

Prior Starwood Land Connection

The new lending relationship follows an earlier land-investment tie between the firms. Trez Capital previously reported a $13.7 million investment through its U.S. Opportunity Funds, in partnership with Starwood Land, in a 2,722-lot, three-project portfolio in Houston and San Antonio. The projects are Lakeside Bayou (995 lots), Woodland Lakes (1,271 lots) and Arcadia Ridge (496 lots).

Market Backdrop for Residential Land Lending

The partnership arrives as U.S. residential development faces mixed conditions. Single-family building permits ran at an annualized 845,000 units in September 2026, down 4.0% from August, while total privately owned housing permits were 1.4 million, down 3.0% year over year. Lower permitting activity limits near-term lot production, which can raise the value of well-located, entitled or infrastructure-ready land.

Elevated mortgage rates continue to weigh on affordability and builder production. The National Association of Home Builders said September single-family starts supported expectations for lower 2026 production, with further declines possible in 2027 as rates remain elevated and material costs rise. Average 30-year mortgage rates have been near 7.4% during 2026, more than one percentage point above the start of the year.

Policy changes may support the development pipeline. About one-third of states enacted significant housing reforms in 2026, including zoning, parking and permitting changes intended to reduce costs and accelerate construction.

Firm Profiles

Starwood Capital Group, founded in 1991, has raised more than $95 billion of capital and has more than $130 billion of assets under management. In June 2026, it held the final closing of Starwood Distressed Opportunity Fund XIII, with commitments exceeding $10.2 billion from more than 300 investors across approximately 20 countries.

Trez Capital, founded in 1997, provides commercial real estate debt and equity financing in Canada and the United States. Trez Corporate Group reported more than C$4.7 billion in assets under management as of the second quarter of 2026 and has funded more than 1,800 transactions totaling more than C$23 billion since inception.

Outlook

The partnership positions both firms for long-term U.S. housing demand while lending through near-term pressures from interest rates, affordability and construction costs. Its results will depend on the pace of originations toward the $1 billion annual target and on the performance of the underlying land loans.

Sources

• PR Newswire: Starwood Capital Group and Trez Capital Announce Strategic Partnership Focused on U.S. Residential Land Financing