Starwood Capital Group is an
investment firm
An investment company is a financial institution principally engaged in holding, managing and investing securities. These companies in the United States are regulated by the U.S. Securities and Exchange Commission and must be registered under t ...
headquartered in
Miami Beach, Florida
Miami Beach is a coastal resort city in Miami-Dade County, Florida. It was incorporated on March 26, 1915. The municipality is located on natural and artificial island, man-made barrier islands between the Atlantic Ocean and Biscayne Bay, the ...
. It is managed by
Barry Sternlicht
Barry Stuart Sternlicht (born November 27, 1960) is an American billionaire and the co-founder (with Bob Faith), chairman, and CEO of Starwood Capital Group, an investment fund with over $60 billion in assets under management. He is also chairm ...
.
It was co-founded by Sternlicht and
Robert Faith
Robert Alan Faith (born 1963/1964) is an American businessman, and the founder, chairman and chief executive officer (CEO) of Greystar Real Estate Partners.
Early life
Faith grew up in Oklahoma, and earned a bachelor's degree in Petroleum Enginee ...
in 1991.
In 1993, Faith left Starwood to found
Greystar Real Estate Partners
Greystar Real Estate Partners is an international real estate developer and manager based in the United States. As of April 2019, Greystar had $32 billion in gross assets under management, and operated in nine countries in 2022.
Greystar was t ...
.
[
]
History
In 1991, at the age of 31, Sternlicht launched the firm to buy apartment
An apartment (American English), or flat (British English, Indian English, South African English), is a self-contained housing unit (a type of residential real estate) that occupies part of a building, generally on a single story. There are ma ...
buildings that were being sold by the Resolution Trust Corporation
The Resolution Trust Corporation (RTC) was a U.S. government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets ...
, created by the federal government to hold and liquidate the real estate assets owned by failed banks after the savings and loan crisis.[ Sternlicht raised $20 million from the families of ]William Bernard Ziff Jr.
William Bernard "Bill" Ziff Jr. (June 24, 1930 – September 9, 2006) was an American publishing executive. His father, William Bernard Ziff Sr., was the co-founder of Ziff Davis Inc. and when the elder Ziff died in 1953, Ziff took over the mana ...
and Carter Burden
Shirley Carter Burden Jr. (August 25, 1941 – January 23, 1996) was an American politician who served in the New York City Council from 1970 to 1977. He was a great-great-great-grandson of Commodore Cornelius Vanderbilt.
Burden received his B. ...
of New York to fund these purchases.
In 1993, the company contributed the apartment portfolio to Sam Zell
Samuel Zell (born Shmuel Zielonka, September 28, 1941) is an American billionaire businessman and philanthropist. A former lawyer, Zell is the founder and chairman of Equity Group Investments, a private investment firm, founded in 1968. He has ...
's Equity Residential
Equity Residential is a publicly traded real estate investment trust that invests in apartments.
As of December 31, 2021, the company owned or had investments in 310 properties consisting of 80,407 apartment units in Southern California, San Fr ...
in exchange for a 20% stake in the company.
In 1994, in partnership with Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
, the company purchased Westin Hotels & Resorts
Westin Hotels & Resorts is an American upscale hotel chain owned by Marriott International. , the Westin Brand has 226 properties with 82,608 rooms in multiple countries in addition to 58 hotels with 15,741 rooms in the pipeline.
History Wester ...
in a $561 million transaction.[ In January 1995, Starwood purchased Hotel Investors Trust, an almost-bankrupt ]real estate investment trust
A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping cente ...
, and in 2005, acquired Groupe du Louvre
Groupe du Louvre is a French company, headquartered in Village 5, La Défense in Nanterre, France. Groupe du Louvre and Louvre Hotels Group was sold to Shanghai Jin Jiang International Hotels Development Co., Ltd. in 2015. The company was owned ...
, which owned crystal maker Baccarat
Baccarat or baccara (; ) is a card game played at casinos. It is a comparing card game played between two hands, the "player" and the "banker". Each baccarat coup (round of play) has three possible outcomes: "player" (player has the higher score ...
.[ Groupe de Louvre was sold in 2015, but Baccarat was retained by Starwood.
In 2009, a consortium led by Starwood Capital bought 40% of the loan portfolio of ]Corus Bankshares
Corus Bankshares, Inc. (, previously ) operated as the holding company for Corus Bank, N.A., a United States company that offered consumer and corporate banking products and services.
Corus Bank
The bank's deposit products included checking, savin ...
, which suffered from bank failure
A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities. A bank usually fails economically when the market value of its assets ...
. In 2010, the company lost an auction to buy Extended Stay Hotels
Extended Stay America, Inc., headquartered in Charlotte, North Carolina, is the operator of an economy apartment hotel chain in the United States and Canada. As of December 31, 2019, the company owned and operated 557 hotel properties consisting ...
, which was in bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
. Starwood unsuccessfully filed an objection against the sale to Centerbridge Partners
Centerbridge Partners is a multi-strategy private investment firm focused on leveraged buyouts and distressed securities.
The firm manages over $32 billion of assets with the bankruptcy court in Manhattan. In the same year, Starwood received a majority ownership stake in Riviera Holdings
Riviera Holdings Corporation is a defunct casino operator that was based in Winchester, Nevada. It owned two casinos: the Riviera on the Las Vegas Strip, closed in 2015; and the Riviera Black Hawk in Black Hawk, Colorado, sold in 2011.
History
...
, owners of the Riviera
''Riviera'' () is an Italian word which means "coastline", ultimately derived from Latin , through Ligurian . It came to be applied as a proper name to the coast of Liguria, in the form ''Riviera ligure'', then shortened in English. The two areas ...
hotel and casino in Las Vegas, Nevada
Las Vegas (; Spanish for "The Meadows"), often known simply as Vegas, is the 25th-most populous city in the United States, the most populous city in the state of Nevada, and the county seat of Clark County. The city anchors the Las Vegas ...
and Riviera Black Hawk in Black Hawk, Colorado
Black Hawk is a home rule municipality located in Gilpin County, Colorado, United States. The city population was 127 at the 2020 United States Census, making Black Hawk the least populous city (rather than town) in Colorado. The tiny city is a ...
, after a bankruptcy reorganization.
In 2012, the company began construction of a chain of hotels under the name of Baccarat Hotels and Resorts, featuring crystal chandeliers from Baccarat. In 2015, the firm sold its flagship Baccarat hotel in New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
. In the same year, the group partnered with Toll Brothers
Toll Brothers is a company which designs, builds, markets, sells, and arranges financing for residential and commercial properties in the United States. In 2020, the company was the fifth largest home builder in the United States, based on home ...
to develop the Pierhouse at Brooklyn Bridge Park.
In December 2013, Starwood Global Opportunity Fund IX, in partnership with Vencom, bought 7 retail properties from the Swedish retail group Kooperativa Förbundet
KF ( sv, Kooperativa Förbundet, "Co-operative Union") is a federation of consumer co-operatives in Sweden and a retail group, with groceries as its core business.
History
KF was founded in 1899 by 41 local consumer co-operatives in order to s ...
for 3.9 billion Swedish kronor, or $593.3 million, and sold these in 2016 and 2017. That year, the company acquired seven malls from Westfield Group, including Great Northern Mall in North Olmsted and Franklin Park Mall in Toledo, with properties in Indiana, California and Washington, together dubbed Starwood West.[
Between 2013 and 2014, Starwood also acquired three British hospitality groups: ]De Vere Group
De Vere is a hotels and leisure business, which until the late 1990s was a brewing company known as Greenall's. It used to be listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index.
History
Greenall's Brewery was f ...
for 232 million, Four-Pillars Hotels
Four Pillars Hotels was a hotel chain operating in the United Kingdom. The group had six hotels, situated in Oxford, the Cotswolds and the Thames Valley, operating in the three and four star sector. In 2014 the company was acquired by America ...
for 90 million, and Principal Hayley Group
Principal Hotel Company is a British hotel and conference venue operator headquartered in Harrogate, England.
History
Principal Hotel Company advertises that it was established in 1898, as that is the year the oldest hotel in its chain, Kimpton F ...
for 360 million.
In February 2014, Starwood Property Trust spun off Starwood Waypoint Residential Trust, a single-family rental real estate investment trust. In January 2016, Starwood Waypoint Residential Trust merged with Colony American Homes, creating Colony Starwood Homes. In 2017, it was merged into Invitation Homes
Invitation Homes Inc. is a public company traded on the New York Stock Exchange. It is headquartered in the Comerica Bank Tower in Dallas, Texas. Dallas B. Tanner serves as chief executive officer. As of 2017, the company was reportedly the large ...
. In March 2014, the firm acquired a stake in the A.S. Roma
' (''Rome Sport Association''), commonly referred to as Roma (), is a professional football club based in Rome, Italy. Founded by a merger in 1927, Roma has participated in the top tier of Italian football for all of its existence, except for ...
football club, and in October 2014, Starwood purchased 7 upscale malls in Virginia
Virginia, officially the Commonwealth of Virginia, is a state in the Mid-Atlantic and Southeastern regions of the United States, between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth ar ...
, Florida
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
, North Carolina
North Carolina () is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and So ...
, Texas
Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
, and Michigan
Michigan () is a state in the Great Lakes region of the upper Midwestern United States. With a population of nearly 10.12 million and an area of nearly , Michigan is the 10th-largest state by population, the 11th-largest by area, and the ...
from Taubman Centers
Taubman Centers, Inc. is an American real estate investment trust headquartered in Bloomfield Hills, Michigan. The company invests in shopping centers, and is a subsidiary of Simon Property Group since 2020.
History
The company was founded in 19 ...
in a $1.4 billion transaction.
In 2016, the company acquired 23,262 apartments from Equity Residential
Equity Residential is a publicly traded real estate investment trust that invests in apartments.
As of December 31, 2021, the company owned or had investments in 310 properties consisting of 80,407 apartment units in Southern California, San Fr ...
for $5.365 billion.
In September 2017, Starwood invested $250 million in YOTEL for a 30% stake.
In 2021, Starwood's mall holdings had decreased from thirty to eight with the impact of the COVID-19 pandemic on the retail industry, and the company selling some properties at a loss to reduce its $2 billion in CMBS mortgage debt.["Sternlicht’s Starwood Gives Up on Malls After Plunge in Values" by John Gittelsohn; Bloomberg; July 13, 2021. Accessed 2022-10-25]
/ref>
In 2022, CEO Sternlicht voiced strong criticism of the Federal Reserve
The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
for creating calamitous economic conditions by needlessly raising interest rates."The_Fed_is_going_to_cause_'unbelievable_calamities'_if_they_keep_hiking,_according_to_Barry_Sternlicht"_by_Carmen_Reinicke;_CNBC
;_October_4_2022._Accessed_2022-10-25.html" ;"title="CNBC">"The Fed is going to cause 'unbelievable calamities' if they keep hiking, according to Barry Sternlicht" by Carmen Reinicke; CNBC">"The_Fed_is_going_to_cause_'unbelievable_calamities'_if_they_keep_hiking,_according_to_Barry_Sternlicht"_by_Carmen_Reinicke;_CNBC
;_October_4_2022._Accessed_2022-10-25/ref>
_Notable_real_estate_investments
_References
{{portal.html" ;"title="CNBC
; October 4 2022. Accessed 2022-10-25">CNBC">"The Fed is going to cause 'unbelievable calamities' if they keep hiking, according to Barry Sternlicht" by Carmen Reinicke; Companies.html" ;"title="CNBC
; October 4 2022. Accessed 2022-10-25/ref>
Notable real estate investments
References
{{portal">Companies">Connecticut
1991 establishments in Florida
Companies based in Fairfield County, Connecticut">Financial services companies established in 1991
1991 establishments in Florida
Companies based in Fairfield County, Connecticut
Greenwich, Connecticut
Investment companies of the United States
Privately held companies based in Connecticut
Real estate companies of the United States