Transcription
REDEFINING REAL ESTATE INVESTINGSTARWOODCAPITAL PROHIBITEDGROUP 1CONFIDENTIAL INFORMATION – PROPRIETARY AND TRADE SECRET – DISTRIBUTIONIS STRICTLY
AT A GLANCEStarwood Capital Groupis a 25-year-old privateinvestment firm with:nA primary focus on global real estate.nA ssets under management of 51 billion.nnnnM ore than 2,200 employees in nineoffices worldwide, and approximately17,000 additional employees involved witha dozen portfolio operating companies.A seasoned, stable senior managementteam that has worked together an averageof 17 years and possesses an average of28 years of industry experience.T he investment flexibility to shiftbetween real estate asset classes,geographies and positions in the capitalstack as we perceive risk/return dynamicsto be evolving.E xtensive public markets expertise,having guided initial public offeringsfor eight leading companies.SALESFORCE TOWER, LONDON2STARWOOD CAPITAL GROUPON THE COVER:BACCARAT HOTEL & RESIDENCES NEW YORKPENTHOUSE (artist’s rendering)STARWOOD CAPITAL GROUP3
OUR FIRMStarwood Capital Group is a private investment firm focused on real estate whosebusiness is built upon innovation. The Firm’s creativity is its primary differentiator—andthe source of its ability to unlock value on behalf of investors.Since its inception in 1991, Starwood Capital has raised 34 billion of equity capital and currently has 51 billion of assets under management. Over the past25 years, Starwood Capital has acquired more than 79 billion of assets across virtually every real estateasset class,1 ESIDENTIAL:INDUSTRIAL:LOANS:OPERATING COMPANIES:65 million square feet143,000 units53 million square feet2,60052,000 lots37 million square feet2,65028That spirit of innovation goes back to the Firm’s roots in thedepths of the savings & loan crisis of the early 1990s. At that time,Chairman & CEO Barry Sternlicht founded Starwood Capital tocapitalize on the unique opportunity to acquire non-performingloans and real estate assets from the U.S. government-ownedResolution Trust Corp. By purchasing several thousand multifamilyunits at a significant discount to replacement cost—in distressedmarkets that he believed were poised for recovery—Mr. Sternlichtestablished an investment template that Starwood Capitalcontinues to follow to this very day.In the 25 years since its inception, Starwood Capital hasgrown into a diversified investment company that todayencompasses more than 2,200 employees, and approximately17,000 employees involved with a dozen portfolio operatingcompanies. The Firm and its affiliates maintain offices in Atlanta,Chicago, Greenwich, Hong Kong, London, Los Angeles, Miami,San Francisco and Washington, D.C.Throughout its history, the Firm has created a number of marketleading platforms to enhance operational efficien cies andmaximize the value of its investments. These platforms include: One of the world’s largest public hotel companies—StarwoodHotels & Resorts (NYSE: HOT). Two of the biggest commercial mortgage finance companies inthe United States—Starwood Property Trust (NYSE: STWD) andiStar (NYSE: STAR). One of the largest collections of multifamily apartments in theUnited States, with approximately 90,000 units currently undermanagement. One of the largest portfolios of select-service hotels in theUnited States, with a current portfolio exceeding 500 properties. One of the largest homebuilders in the United States—TRI Pointe Homes (NYSE: TPH), with a current inventory ofapproximately 28,000 developable lots. One of the leading regional mall operators in the United States—Starwood Retail Partners, which currently manages more than28 million square feet of retail space. One of the largest publicly traded owners and operators of singlefamily rental homes in the United States—Starwood WaypointResidential Trust (NYSE: SWAY), now trading as Colony StarwoodHomes (NYSE: SFR). One of the leading providers of residential sites to the U.S.homebuilding industry—Starwood Land Ventures, with nearly20,000 lots acquired since inception and a current inventory ofnearly 7,500 developable lots. One of the United Kingdom’s leading hotel operators(The Principal Hotel Company), with over 40 properties undermanagement.In its pursuit of the most compelling opportunities globally,Starwood Capital has invested in more than 30 countries, rangingfrom the Americas to Europe to Asia. Highlighting StarwoodCapital’s international commitment and ability to shift geographiesto capitalize on market dislocations, the Firm made the strategicdecision in 2011 to enhance the Firm’s longstanding presence inEurope—in anticipation of a prolonged recovery across the region—by relocating the Firm’s Global Head of Acquisitions to London.Reflecting the success of its investment activities, Starwood Capitaland its professionals have received numerous industry accoladesover the years. In 2015 alone, the Firm was honored by leading globalprivate real estate publication PERE in the following categories: North American Firm of the Year. European Firm of the Year. Global Industry Figure of the Year. North American Industry Figure of the Year. North American Deal of the Year. #2 in the PERE 50 ranking of the top private equity realestate firms.From the introduction of the Westin Hotels’ Heavenly Bed andStarwood Preferred Guest program, to the development of hotelbrands inspired by nature (1 Hotels) and an iconic French crystalmaker (Baccarat Hotels & Resorts), Starwood Capital has alwayschallenged the conventional wisdom in its pursuit of value aroundthe world. We invite you to partner with us as we continue Redefining Real Estate Investing.1Datathroughout asof Dec. 31,20154 STARWOODCAPITALGROUPSTARWOOD CAPITAL GROUP5
STARWOOD CAPITAL HISTORICAL HIGHLIGHTSBarry Sternlicht launchesStarwood CapitalStarwood OpportunityFund IV (SOF IV)closes at 830MStarwood Capital, via anaffiliate, acquires a majorityof the distressed senior debtof Hotel Investors Trust, thussetting the stage for the Firm’semergence as a global leaderin the hospitality spaceHôtel du Louvre, Paris, Hotel I, SOF VII andSDL Co-InvestStarwood Hotels & ResortsWorldwide is added to theS&P 500 IndexStarwood MezzanineInvestors closes at 220M1993Starwood OpportunityFunds I and IA(SOF I and IA) closeat 52MStarwood Opportunity Fund II(SOF II) closes at 102MStarwood Capital createsStarwood Hotels & ResortsWorldwide (NYSE: HOT)and Mr. Sternlicht becomesChairman and CEOStarwood Capital Global HospitalityFund II (Hotel II) closes at 965M19951996Starwood Capitalpurchases WestinHotels & Resorts andbegins a new growthphase for the businessStarwood Capital createsStarwood Financial,subsequently renamed iStarFinancial (NYSE: STAR), whichbecomes one of the largestpublicly traded real estatefinance companies in the U.S.Starwood Hotels & ResortsWorldwide completesthe 14B acquisition ofITT Sheraton, making thecompany the largest hoteloperator in the world199819992000200120022003Starwood OpportunityFund VI (SOF VI) closes at 567MLes Docks, Marseille, France, SOF VI20042005Starwood CapitalHospitality Fund I(Hotel I) closesat approximately 900MStarwood Capital opensan office in London—marking the beginningof the Firm’s significantexpansion of itsinternational operationsStarwood Capital, via an affiliate,makes its first internationalinvestment, purchasing thedistressed loans of condominiumsin Bangkok200720082009201020112012Starwood Capital affiliateStarwood EuropeanReal Estate Finance(LSE: SWEF) goes publicStarwood EnergyInfrastructureFund (SEIF I)closes at 433MStarwood Energy Group, via an affiliate,completes the Starwood SSM Project—one ofthe largest solar power plants in CanadaStarwood Capital, viaan affiliate, launchesStarwood LandVentures, which goeson to become one ofthe leading providers ofresidential sites to the U.S.homebuilding industryStarwood Debt Fund II(Debt II) closes at 378MStarwood Global OpportunityFund VII (SOF VII) closes at 1.475BSTARWOOD CAPITAL GROUP2006Starwood Capital via SOF VIII, goes publicwith Opus Bank (NASDAQ: OPB), a leadingregional real estate lenderStarwood Global OpportunityFund X (SOF X) closes at 5.6BStarwood Capital, via anaffiliate, makes the firstin a series of acquisitionsof leading regional mallsin the U.S., and createsStarwood Retail Partnersto manage the portfolioThe Visionaire, developedby Starwood Capital via anaffiliate, becomes Manhattan’sfirst Platinum LEED-certifiedcondominium projectNational Golf Ruffled Feathers Golf Course,Lemont Illinois, SOF VI1997Starwood Waypoint Residential Trust(NYSE: SWAY), one of the largestowners of single-family rental homesin the U.S., goes publicStarwood Capital, via an affiliate,makes the first in a series ofacquisitions that will establishthe Firm as one of the largestoperators of select-service andextended-stay hotels in the U.S.Mint, Miami, SOF VIII and CB Co-InvestPacific Shores Center, Redwood City,California, SOF VII6Starwood Energy Infrastructure Fund II (SEIF II) closes at 983MMr. Sternlicht returns toStarwood Capital full timeas Chairman and CEOFirst W Hotelopens in New York1994Starwood Capital funds acquire Principal Hayley, whichthe Firm subsequently merges with Four Pillars andDe Vere Venues to create a leading U.K. hotel platform tarwood Global Opportunity FundSVIII (SOF VIII) closes at 1.83BLeo Burnett Building,Chicago, SOF IV805 Third Avenue, New York,Starwood Mezzanine1992Wokefield Park, Reading, SOF IX and U.K. Co-InvestStarwood Capital, via an affiliate,takes National Golf Properties(NYSE: TEE) privateSOF I/IA contribute themajority of their multifamilyportfolio to EquityResidential (NYSE: EQR)—which goes on to becomethe largest publicly tradedapartment owner in the U.S.,with Mr. Sternlicht servingon its Board of Directors1991Starwood Capital funds complete the 3.2B acquisition of Groupe Taittingerand Société du LouvreStarwood Opportunity Fund V(SOF V) closes at 516MStarwood Capital funds acquire CorusBank’s 4.5B face-value loan portfoliofrom the FDIC in one of the government’slargest distressed debt transactionsduring the Great RecessionStarwood Capital funds acquire aportfolio of apartments across the U.S.from Equity Residential in a transactionvalued at 5.4B—the largest non-hotelpurchase in the Firm’s history2013201420152016Starwood Capital funds acquireTMI Hospitality, one of the largestowners, managers and developersof select-service hotels in the U.S.Starwood Capital launches 1 Hotelsand Baccarat Hotels & Resorts brandsStarwood SSM Project, Ontario, Canada, SEIF ISOF VIII’s TRI Pointe Homes (NYSE: TPH)goes public and is later combined with aWeyerhaeuser subsidiary to create one of thelargest homebuilders in the U.S.Starwood Capital creates Starwood PropertyTrust (NYSE: STWD), a commercial mortgageREIT that is the largest blind pool companyever listed on the NYSEBorgarfjord 2 – Kista (Greater Stockholm),Sweden, SOF XStarwood Capital fundsacquire a diverse portfolioof assets in Sweden andNorway for 1.4B—the year’slargest property transactionin ScandinaviaStarwood Distressed OpportunityFund IX (SOF IX) closes at 4.2BStarwood Capital, via an affiliate, and Starwood PropertyTrust acquire LNR Property LLC (along with subsidiaryHatfield Philips International) for 1.05B, thus expandingthe Firm’s distressed real estate expertiseSTARWOOD CAPITAL GROUP7
OUR BUSINESSESStarwood Capital has been organized into complementary businesslines that feature executive sponsorship and dedicated teams ofprofessionals, supported by the Firm’s general resources in acquisitions,asset management, finance, investor relations, accounting, tax and legal.These business lines include:Global Opportunistic Real EstateStarwood Capital considers opportunistic real estateinvesting to be defined by minimizing downside risk andmaximizing upside. In executing this strategy, the Firm’sseasoned team pursues global investment opportunitiesacross all real estate asset classes and positions in the capitalstack that offer compelling risk/return propositions. Forexample, Starwood Capital has been one of the most prolificinvestors in distressed debt since the global financial crisis,while acquiring cash-flowing office, residential, industrial,retail and hotel assets at discounts to replacement cost. TheFirm has also successfully built platform strategies suchas our land portfolio, retail malls and select-service hotels.Starwood Capital has raised 15 opportunistic real estate fundsto date, with the most recent (Starwood Global OpportunityFund X), attracting 5.6 billion of committed capital—thelargest fund in the Firm’s history.Performing Real Estate DebtWith total capital deployed since inception of more than 28 billion, Starwood Property Trust (NYSE: STWD) is thelargest commercial mortgage real estate investment trustin the United States. Externally managed by StarwoodCapital, Starwood Property Trust focuses on originating,acquiring, financing and managing commercial mortgageloans and other commercial real estate debt investments.Starwood European Real Estate Finance Ltd. (LSE: SWEF),also externally managed by Starwood Capital, pursues similarinvestment objectives, with a geographic focus on Europe.RetailFormed in 2012 to acquire, redevelop, reposition, lease,manage and operate the retail centers in Starwood Capital’sportfolio, Starwood Retail Partners has grown to becomeone of the largest mall enterprises in the United States.Starwood Retail Partners seeks to capitalize on opportunitiesin the rapidly changing retail landscape through a uniquecombination of talent, experience and execution capabilitiesin the regional mall, lifestyle, street retail and power centersectors. Through a variety of co-investments, joint-venturepartnerships, stand-alone transactions and a closed endcore-plus fund, Starwood Retail Partners currently managesa portfolio of 30 properties across the United States,comprising 28 million square feet of gross leasable area andover 6 billion in value. The organization has approximately370 employees, and brings hands-on experience inmanagement, leasing and redevelopment to each of itsinvestments.Loan ServicingStarwood Capital, through Starwood Property Trust’s 2013acquisition of LNR Property LLC, operates as a special loanservicer in the United States, and has expanded its productofferings to include fixed-rate and conduit loans. LNRprovides Starwood Capital with unique insights into thedistressed debt market, as it is the named special servicer on24% of all CMBS transactions in the industry representing anunpaid principal balance of 101 billion. In Europe, StarwoodProperty Trust’s non-controlling minority interest in Situs—which acquired LNR subsidiary Hatfield Philips Internationalin 2016—allows Starwood Capital to benefit from access to amarket-leading primary and special servicing platform.Hotel Brand ManagementSH Group, a hotel brand management company withmore than 1,100 employees owned by a fund sponsoredby Starwood Capital, provides the Firm with significantproprietary investment opportunities and helps enhance theperformance of fund hotel investments—including assistingStarwood Capital’s in-house design and hotel operationsCOURTESY OF RELATED-OXFORDREAL ESTATECLOCKWISE FROM TOP LEFT: 1 HOTEL CENTRAL PARK, NEW YORK CITY; NINE AT MARY BRICKELL VILLAGE, MIAMI, FLORIDA (artist’s rendering); HUDSON YARDS, NEW YORK CITY (artist’srendering); STEPHENS RANCH WIND PROJECT, BORDEN AND LYNN COUNTIES, TEXAS; HELSFYR ATRIUM, OSLO, NORWAY8STARWOOD CAPITAL GROUPSTARWOOD CAPITAL GROUP9
experts. Leveraging its marketing, design, operational andtechnological expertise, SH Group has created what StarwoodCapital believes are some of the most groundbreaking anddynamic hotel brands in the world, including: 1 HotelsAs a luxury lifestyle hotel brand inspired by nature, 1 Hotelscultivates the best of eco-conscious design and sustainablearchitecture, together with extraordinary comfort and anunrivaled level of service. 1 Hotels —which launched in 2015with the opening of exclusive properties in Miami’s SouthBeach and Manhattan, to be followed by Brooklyn in 2016—was developed with the simple idea that those who travelthe world also care about it. 1 Hotels upholds this vision bychanneling nature through design, culinary partnerships,connecting with the local community and taking small stepsto make a big difference. B accarat Hotels & ResortsDrawing upon the 250-year history of the iconic Frenchcrystal maker, Baccarat Hotels & Resorts delivers adistinctive, personalized experience in the world’s mostillustrious locales. Baccarat Hotels & Resorts launchedin March 2015 with the opening of its flagship propertyin New York City, to be followed by Rabat, Morocco in2016. Distinguished by a singular sense of glamour andcelebration, as well as a groundbreaking vision of modernluxury, Baccarat Hotels & Resorts sets a new precedent forthe ultimate lifestyle experience—reimagining excellencethrough impeccable service and inspired artistry.ResidentialIn January 2013, Starwood Capital established TRI PointeHomes (NYSE: TPH), a West Coast homebuilder that mergedwith Weyerhaeuser’s homebuilding business in 2014 to createone of the largest homebuilders in the United States. TRIPointe Homes offers Starwood Capital a unique perspective onthe U.S. residential markets, while Starwood Land Ventures,one of the nation’s leading providers of residential sites tothe homebuilding industry, provides additional insights intoland valuation trends and their resulting impact on residentialproperty values.ENERGYEnergy InfrastructureStarwood Energy Group specializes in energy infrastructureinvestments, with a focus on the natural gas and renewablepower generation and transmission sectors. Through itsgeneral opportunity funds, Starwood Energy InfrastructureFund I and II (SEIF I and SEIF II), and other affiliated investmentvehicles, Starwood Energy Group manages total equitycommitments of approximately 2.3 billion, and has executedtransactions totaling more than 5 billion in enterprisevalue. By leveraging its extensive operations, development,construction, acquisition and financing expertise, the team iswell-positioned to capitalize on opportunities emerging in thisrapidly evolving industry.Oil & GasStarwood Oil & Gas invests in conventional andunconventional oil & gas assets in North America. In 2013, thegroup made a 35 million investment in Northeast NaturalEnergy to fund the Charleston, WV-based company’s acreageacquisition and development program in one of the mostprolific areas of the Marcellus Shale. In 2015, the group led a 110 million investment in EagleRidge Energy, a Dallas-basedoil & gas producer focused on one of the lowest-cost naturalgas shale plays in Texas. Leveraging its industry knowledgeand extensive transactional experience, Starwood Oil & Gas iswell-positioned to capitalize on the dramatic transformation ofthe energy sector.CLOCKWISE FROM TOP LEFT: LIBERTY CENTER, PITTSBURGH, PENNSYLVANIA; BALTIMORE WHARF, LONDON; TRI POINTE HOMES, LOS ARBOLES, SIMI VALLEY, CALIFORNIA;METREON, SAN FRANCISCO, CALIFORNIA; TOWER PLACE, ATLANTA, GEORGIA; BACCARAT HOTEL & RESIDENCES, NEW YORK CITY10STARWOOD CAPITAL GROUPSTARWOOD CAPITAL GROUP11
OUR EDGEStarwood Capital occupies a uniqueposition in global real estate investing,based on the following differentiators:longer-term holds or individual asset sales, Starwood Capitalhas completed a number of successful public market executions,including: Starwood Property Trust (NYSE: STWD) Starwood Hotels & Resorts Worldwide (NYSE: HOT) Equity Residential (NYSE: EQR)Deep, Hands-On Real Estate PerspectiveStarwood Capital has 25 years of experience covering virtuallyevery real estate asset class. The Firm has acquired approximately 59 billion of opportunistic real estate assets since inception,generating strong returns throughout that time. The Firm alsooperates one of the largest commercial mortgage REITs in theUnited States—Starwood Property Trust (NYSE: STWD), whichhas deployed over 28 billion in capital since inception. S tarwood Waypoint Residential Trust (NYSE: SWAY),now trading as C olony Starwood Homes (NYSE: SFR) TRI Pointe Homes (NYSE: TPH) iStar Financial (NYSE: STAR) Starwood European Real Estate Finance (LSE: SWEF) Opus Bank (NASDAQ: OPB)In addition, Starwood Capital has executed several privatizations,including National Golf Properties, Inc., Société du Louvre andGroupe Taittinger.Investment AgilityA hallmark of Starwood Capital is its ability to pursue a widevariety of investment opportunities as they emerge— moving fromasset class to asset class, shifting geographies from the UnitedStates to international markets, and changing positions in thecapital stack as the team perceives risk/return dynamics to beevolving.Scale and CreativityAs one of the largest institutional real estate investors inthe world, Starwood Capital benefits from a global sourc ingengine—creating a robust deal flow, and accessing the majority oftransactions on an off-market basis. In fact, over 90% of SOF X,SOF IX and SOF VIII’s investments were sourced off-market or viasmall auctions, including all 14 of SOF X’s European investmentsto date. The Firm also boasts a history of extraordinary creativitythat extends to its innovative transaction structuring andexecution capabilities.Operational ExpertiseStarwood Capital has broad real estate operating experience, withasset management organized into dedicated teams by specialty.The Firm has created a number of platforms that were designedto enhance operational efficien cies and maximize the value ofunderlying assets. In addition, Starwood Capital’s in-house loanworkout expertise gives the Firm the ability to manage largeportfolios of NPLs.Capital Markets SkillsThe Firm’s capital markets expertise is a core competency thatStarwood Capital believes sets it apart from more traditional realestate investors. Starwood Capital’s team constantly evaluatesreal estate in relation to the capital markets’ valuations in order totake advantage of pricing inefficiencies, and arbitrage between thepublic and private markets. When the public markets are willingto pay more for assets or platforms than could be generated from12STARWOOD CAPITAL GROUPOn the debt side, the Firm’s skilled in-house capital markets teamhas closed transactions totaling approximately 52 billion sinceJanuary 2010. The team’s expertise and global network of lendingrelationships has often allowed it to obtain best-in-market termsfor investors, while using brokers sparingly (less than 15% of thetime).Global ReachTHE PARK, PRAGUE, CZECH REPUBLICTHE PARK, PRAGUELEFT TO RIGHT: STELLA TOWER, NEW YORK CITY; AS ROMA STADIUM, ROME(artist’s rendering); THE ROXBURGHE HOTEL, EDINBURGH, SCOTLANDStarwood Capital’s track record as a global investor is wellestablished. Beginning with the purchase of distressedcondominium loans in Bangkok in 1999, the Firm’s internationalinvestments have steadily grown to encompass more than30 countries around the world. In Europe alone, StarwoodCapital has acquired more than 15.6 billion of assets in over50 transactions since 1999. To provide on-the-ground supportfor international investment op portunities as they develop, theFirm has established a number of offices around the world. Forexample, the Firm opened a London office in 2003 that nowserves as the hub of a pan-European operation comprising nearly150 employees. Today, Starwood Capital and its affiliates operate10 offices worldwide. This expansive network allows the Firm toefficiently evaluate the most compelling risk/return opportunitiesacross the globe.Distressed Investing in the Firm’s DNAStarwood Capital was founded during the savings & loan crisisin the early 1990s, when the Firm acquired real estate holdingsfrom the Resolution Trust Corp. The Firm has since capitalized onnumerous opportunities to pur chase distressed assets at deepdiscounts. Across its last three funds, the Firm has acquired 10.4billion of unpaid principal balance NPLs, partially sourced byengaging domestic money center and regional banks, and formingSTARWOOD CAPITAL GROUP13
OUR EDGEAn Information Advantagestrategic partnerships with the National Asset ManagementAgency (Ireland’s “bad bank”) and the FDIC (via the Corus Bankinvestment) to purchase some of their NPL pools, as well aspurchasing a pool from Bankia (Spain’s amalgamation of seventroubled local banks).The expertise developed through Starwood Capital’s symbioticbusiness lines enhances the team’s judgment throughout theunderwriting process. These platforms provide critical bottom-upintelligence that helps set the agenda for the Firm’s investmentstrategy:Seasoned, Stable Management TeamThe senior team at Starwood Capital has worked together foran average of 17 years, and possesses an average of 28 yearsof industry experience—across all real estate asset classes andstages of the investment cycle. S tarwood Property Trust: The largest commercial mortgage REITin the United States (by market capitalization), this affiliate helpsStarwood Capital underwrite transactions by providing informationon where loans are being executed in the market. The team alsoshares market data with the Firm to help create more accurateunderwriting projections. As one of the largest loan specialservicers in the United States (through affiliate LNR), as well asan investor in a leading debt advisory and loan servicing platformin Europe (through Starwood Property Trust’s non-controllingminority stake in Situs, which acquired LNR subsidiary HatfieldPhilips International in 2016), the team supplies Starwood Capitalwith market information on both regions, as well as providesappropriate insight into troubled real estate projects.Strong Risk-Adjusted PerformanceStarwood Capital’s disciplined investment approach has enabledthe Firm to consistently deliver strong perfor mance across itsfunds, with the Firm’s first seven funds 100% liquidated.Design LeadershipStarwood Capital believes that it possesses an expertise in thedesign of real estate assets that is unsurpassed in the privateequity industry. This sensibility starts at the top: CEO BarrySternlicht is a member of the Interior Design Hall of Fame, and theFirm’s Head of Design was recently inducted into the HospitalityDesign Platinum Circle. A number of Starwood Capital’s assetshave been acclaimed for their aesthetics, which ultimately helpdrive value for the Firm’s investors. S tarwood Multifamily Portfolio: With approximately 90,000units under management, Starwood Capital is not only one of thelargest apartment owners in the United States, but also among thelargest within a number of select markets. The Firm is, for example,one of the largest institutional owners in Orlando, South Floridaand Denver. This critical mass in targeted markets provides theFirm with information on asset performance that other investorssimply do not possess—and helped give the team a decisive edgein the case of the acquisition in January 2016 of 23,262 gardenstyle units in 72 communities across the United States, as the Firmalready owned assets in 95% of the markets represented in thetransaction.Commitment to Eco-Conscious InvestmentThe Firm continues to set a new standard for the privateequity industry in environmentally responsible investment anddevelopment, across all real estate asset classes. Nowhere is thiscommitment more apparent than 1 Hotels. Operated by StarwoodCapital affiliate SH Group, this luxury lifestyle brand representshospitality with a purpose: To celebrate nature while encouragingsophisticated travelers to live well, do better and connect with theworld around them.Flexible Investment SizingStarwood Capital believes that it occupies a distinct niche inthe market: Nimble enough to target transactions of 50–125million, yet large enough to capitalize on billion-dollar investmentopportunities around the world by utilizing co-investmentfunds. For its sweet spot of midsized transactions, StarwoodCapital believes that the Firm’s reputation, sophistication, speed,access to capital and ability to execute provide the Firm witha competitive advantage over smaller, more regional firms. Onlarger transactions, the Firm’s proven ability to con duct detaileddue diligence using a vast network of resources and relationshipsresults in an in-depth understanding of potential investments thatfew investors can match in a cost-efficient manner.14STARWOOD CAPITAL GROUP S H Group: Starwood Capital’s hotel brand management teambrings operational expertise in the areas of revenue management,marketing, food & beverage, systems and cost management to thehotel underwriting and asset management teams. S tarwood Retail Partners: Starwood Capital’s team of retail expertsgives the Firm an edge in evaluating malls, power centers andlifestyle centers. The team has built strong relationships withtenants and can provide accurate operating metrics to help finetune asset cash flow projections.CLOCKWISE FROM TOP RIGHT: T- MOBILE OFFICE PARK, WARSAW, POLAND;GRAN HOTEL ATLANTIS BAHIA REAL, LAS PALMAS, SPAIN; THE ROYALEXCHANGE, MANCHESTER, ENGLAND; THE ATLANTIC, ATLANTA, GEORGIA;THE CLOISTER AT SEA ISLAND, GEORGIA C olony Starwood Homes: The publicly traded single-familyrental platform enhances Starwood Capital’s knowledge of localresidential markets, helping the Firm better evaluate residentialland values, as well as multifamily rental markets. S tarwood Land Ventures: The Firm’s team of residential landexperts provides granular detail on residential land pricingmovements and new housing trends, as well as development costanalysis.STARWOOD CAPITAL GROUP15
OUR APPROACHStarwood Capital seeks to deliver consistent, robust returns while placing apremium on preserving capital. The team performs a comprehensive risk/returnanalysis on each potential transaction, and only invests in assets with asymmetricalreturn potentia
Redefining Real Estate Investing. That spirit of innovation goes back to the Firm’s roots in the depths of the savings & loan crisis of the early 1990s. At that time, Chairman & CEO Barry Sternlicht founded Starwood Capital to capitalize on the unique opportunity to acquire non-performing loans and
