Starwood Capital Businesses
Starwood Capital has been organized into business lines that each features executive sponsorship and a dedicated team of professionals, supported by the Firm’s general resources in acquisitions, asset management, finance, investor relations, accounting, tax and legal. These business lines include:
Real Estate Businesses
Global Opportunistic Real Estate
This has been Starwood Capital’s primary business since the Firm raised its first distressed opportunistic real estate fund in 1992. In its pursuit of long-term value for investors, the Firm’s seasoned executive team focuses on global investment opportunities across all real estate asset classes and positions in the capital stack that offer compelling risk-reward propositions. We have successfully raised nine opportunistic real estate funds to date, with the most recent (Starwood Distressed Opportunity Fund IX) attracting $4.2 billion of committed capital.
Performing Real Estate Debt
With total capital deployed since inception of more than $11 billion, Starwood Property Trust (NYSE: STWD) is the largest commercial mortgage real estate investment trust in the U.S. Externally managed by Starwood Capital, Starwood Property Trust focuses on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments. Starwood European Real Estate Finance Ltd. (LSE: SWEF), also externally managed by Starwood Capital, pursues similar investment objectives to Starwood Property Trust, with a geographic focus on Europe.
Starwood Retail Partners, an affiliate of private real estate investment firm Starwood Capital Group, manages one of the largest regional mall operating platforms in the U.S., with a portfolio of 21 properties totaling more than 18 million square feet of gross leasable area and $3.8 billion of gross asset value. Starwood Retail Partners seeks to capitalize on opportunities in the rapidly evolving retail landscape by acquiring, redeveloping and repositioning premier real estate assets in the regional mall, lifestyle and power center sectors. Leveraging its deep experience in management, leasing and redevelopment, Starwood Retail Partners is well-positioned to transform leading shopping centers into the one-stop retail destinations of the future.
Hotel Brand Management
SH Group, an affiliate of private real estate investment firm Starwood Capital Group, is a hotel brand management company that owns 1 Hotels, a nature-inspired luxury hotel brand which will launch in 2014 with exclusive properties in Manhattan, Brooklyn and Miami’s South Beach. The group also holds the license for the luxury Baccarat Hotels & Resorts brand, which will roll out in 2014 with the opening of its flagship property in New York. Leveraging its marketing, design, operational and technological expertise, SH Group is the force behind some of the most groundbreaking and dynamic hotel brands in the world. Additional information can be found at 1hotels.com and baccarathotels.com.
As a luxury hotel brand inspired by nature, 1 Hotels combines the best of environmentally sustainable architecture and design with extraordinary comfort and an unrivalled level of service. Owned and operated by hotel brand management company SH Group, an affiliate of private real estate investment firm Starwood Capital Group, 1 Hotels will launch in 2014 with exclusive properties in Manhattan, Brooklyn and Miami’s South Beach. 1 Hotels was developed with the simple idea that nature isn't just beautiful—it changes the way we feel. Each 1 Hotel upholds this vision by channeling nature through design, connecting with the local community, and doing things that matter. Additional information can be found at 1hotels.com
- Baccarat Hotels & Resorts
Drawing upon the 250-year history of the iconic French crystal maker, Baccarat Hotels & Resorts delivers a distinctive personalized experience in the world’s most illustrious locales. Owned and operated by hotel brand management company SH Group, an affiliate of private real estate investment firm Starwood Capital Group, Baccarat Hotels & Resorts will launch in 2014 with the opening of its flagship property in New York. Baccarat Hotels & Resorts is distinguished by its attention to sophisticated, luxurious design, commitment to impeccable service, and an unerring focus on creating memorable experiences. Additional information can be found at baccarathotels.com
Starwood Real Estate Securities, an affiliate of private real estate investment firm Starwood Capital Group, is an SEC-registered investment adviser with total assets under management of almost $600 million. Through its two long/short equity funds and one long-only fund, Starwood Real Estate Securities pursues opportunities to arbitrage the difference between public and private real estate market valuations. Using value-oriented, fundamental analysis, the team seeks to outperform the S&P 500 and REIT indices with significantly lower volatility.
Starwood Capital, through Starwood Property Trust’s 2013 acquisition of LNR Property LLC, also operates as a special loan servicer in the U.S. and a primary and special loan servicer in Europe (through LNR’s subsidiary, Hatfield Philips), and has expanded its product offerings to include fixed-rate and conduit loans. LNR provides Starwood Capital with unique insight into the distressed debt market, as it is the named special servicer on $138 billion in real estate debt, and currently manages $16 billion of real estate-owned and distressed loans. In Europe, Hatfield Philips is the active primary servicer on $16 billion and special servicer on $10 billion of commercial mortgage-backed securities.
In February 2014, Starwood Property Trust spun off its single-family residential business, which merged with Waypoint Real Estate Group, a vertically integrated, single-family rental operating platform, to create Starwood Waypoint Residential Trust (NYSE: SWAY)—one of the largest publicly traded investors, owners and operators of single-family rental homes in the U.S. Starwood Capital also created TRI Pointe Homes (NYSE: TPH), a West Coast U.S. homebuilder currently finalizing a merger with Weyerhaeuser’s homebuilding business that, once consolidated, will be one of the largest homebuilders in the U.S. TRI Pointe Homes offers Starwood Capital unique insights into the U.S. residential markets. Starwood Land Ventures, one of the nation’s leading providers of residential sites to the homebuilding industry, offers additional insights into land valuation trends in the U.S. and their resulting impact on residential property values.
Real Estate Securities
Starwood Energy Group specializes in energy infrastructure investments, with a focus on the natural gas and renewable power generation, and transmission sectors. Through its general opportunity funds, Starwood Energy Infrastructure Fund I and II (SEIF I and SEIF II), and other affiliated investment vehicles, Starwood Energy Group manages total equity commitments of approximately $2.3 billion, and has executed transactions totaling more than $4 billion In enterprise value. By leveraging its extensive development, construction, operations, acquisition and financing expertise, the team is well-positioned to capitalize on opportunities emerging in this rapidly evolving industry.
Oil & Gas
Starwood Oil & Gas, an affiliate of real estate investment firm Starwood Capital Group, invests in conventional and unconventional oil & gas assets in North America. In November 2013, the group closed its first transaction: a $35 million investment in Northeast Natural Energy funding an acreage acquisition and development program in one of the most prolific areas of the Marcellus Shale. Leveraging its industry knowledge and extensive transactional experience, Starwood Oil & Gas is well-positioned to capitalize on the dramatic transformation of the energy sector.
Balbec Capital LP, an affiliate of Starwood Capital, is a pioneering investor in portfolios of steeply discounted claims where the debtor and assets are in bankruptcy. Investments typically involve credit card and other personal loan claims subject to court-approved and administered payment plans on unsecured consumer debt. Through its global platform and experience in worldwide insolvency markets, Balbec Capital seeks to generate returns that are uncorrelated to the capital markets and mitigate risk through a broadly diversified portfolio.