200 S. Wacker Drive, Chicago
Flushing Commons, Queens, NY
Amid the depths of the Great Recession, Starwood Capital recognized that traditional commercial lenders were withdrawing from the marketplace and a significant need had emerged for alternative commercial mortgage financings. In response, the Firm established Starwood Property Trust and in August 2009 took the company public (NYSE: STWD)—creating the largest blind pool company ever traded on the New York Stock Exchange. The business has since grown dramatically, and Starwood Property Trust today is the nation’s largest commercial mortgage REIT, with a market capitalization of more than $5 billion.
The company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt investments. In conjunction with Starwood Capital, Starwood Property Trust in April 2013 acquired LNR Property LLC and subsidiary LNR Partners LLC, the largest special servicer in the U.S., thus gaining significant expertise in the distressed marketplace while also adding substantial scale and sophistication to the company’s operations. In addition, Starwood Property Trust in early 2014 spun off its single-family residential operations into a new entity, Starwood Waypoint Residential Trust (NYSE: SWAY), now trading as Starwood Waypoint Homes (NYSE: SFR; merger with Invitation Homes (NYSE: INVH) announced in August 2017) that is listed alongside Starwood Property Trust on the New York Stock Exchange—and the combined company is one of the largest publicly traded investors, owners and operators of single-family rental homes in the United States.
With total capital deployed since inception of over $29 billion, Starwood Property Trust continues to solidify its position as one of the world’s leading non-bank real estate finance companies.
Starwood Property Trust (NYSE: STWD) goes public in the third-largest REIT IPO in U.S. history, and becomes the largest blind pool company ever listed on the New York Stock Exchange
Starwood Property Trust and a fund affiliated with Starwood Capital co-originate a $475M loan for the acquisition and redevelopment of a 10-story retail building at the Times Square “Bowtie” in Manhattan—one of the world’s preeminent retail locations
Starwood Property Trust partners with Starwood Capital to acquire LNR Property LLC—including subsidiaries LNR Partners LLC, the largest commercial mortgage special servicer in the U.S., and Hatfield Philips International, one of the largest primary and special loan servicers in Europe
Starwood Property Trust originates a $350M first mortgage and mezzanine loan for the South Tower in NYC’s Hudson Yards—the first vertical development in the largest private commercial real estate project in U.S. history
Starwood Property Trust originates a £288M refinancing for the iconic Heron Tower (subsequently renamed Salesforce Tower) in the City of London—widely considered one of the finest office buildings in all of Europe
Starwood Property Trust originates a $275M first mortgage loan for the award-winning Four Seasons Resort Hualalai at Historic Ka’upulehu on Hawaii’s Big Island.
Starwood Property Trust spins off its single-family rental business to create Starwood Waypoint Residential Trust, now trading as Starwood Waypoint Homes (NYSE: SFR, since merged with Invitation Homes) —and the combined company is one of the largest publicly traded investors, owners and operators of single-family rental homes in the United States.
Starwood Property Trust participates in its first major equity investment—the acquisition of a portfolio of four high-quality regional malls in Florida, Michigan, North Carolina and Virginia.
Starwood Property Trust closes its first major European equity investment—the €452M acquisition of a portfolio of 13 office and multifamily properties in Dublin
Real estate lending has been Starwood Property Trust’s primary business since the company went public in 2009. With total capital deployed in our Real Estate Lending segment of over $19 billion, Starwood Property Trust has built a leading franchise in the global real estate finance market. We provide a seamless, one-stop solution for our borrowers and are able to lend for our balance sheet across the capital stack, including providing first mortgages, subordinate debt, mezzanine loans and B-notes. We also leverage Starwood Capital’s global real estate expertise across virtually every asset class to help source, structure and underwrite lending transactions.
Our Real Estate Investing & Servicing (REIS) segment includes our commercial mortgage-backed securities (CMBS) and commercial real estate debt investing business, our special servicing operations, and our commercial mortgage conduit platform. REIS’ market leadership position in CMBS investing and special servicing is the result of its disciplined and consistent approach to investing. Combined with extensive credit underwriting, acquisition, management and workout expertise, this approach has resulted in strong performance across multiple real estate cycles. REIS is led by a seasoned executive team that averages more than 20 years of industry experience and over 19 years with the company.
Utilizing a disciplined and consistent approach, Starwood Property Trust is a leader in both CMBS and commercial real estate debt investments, deploying over $4 billion of capital since 2013. Our due diligence process supports an unmatched execution capacity—including the ability to underwrite hundreds of commercial loans within a short timeframe, utilizing personnel across the United States and deep relationships in the commercial real estate brokerage community. The company’s investment decisions are informed by a proprietary database management system that tracks over 100,000 properties around the country.
Starwood Property Trust operates the world’s largest commercial mortgage special servicer, LNR Partners LLC. Backed by nearly 250 employees, LNR is the named special servicer on 23% of all CMBS transactions in the industry, representing an unpaid principal balance of $93 billion. Since inception, LNR has resolved more than 5,995 non-performing assets with a total principal balance of over $66.4 billion across all major property types. LNR has maintained a resolution rate of over 81% on over 5,995 CMBS loans—and, of those resolved loans, $47 billion (71%) were liquidated.
To enhance communication and transparency, LNR has created a centralized repository, Windows Into Our Workouts, that enables investors to access detailed information on assets serviced by LNR, resolved over the last two years or in the process of being marketed for sale.
Starwood Mortgage Capital is Starwood Property Trust’s commercial real estate conduit loan origination platform. Starwood Mortgage Capital originates competitively priced five-, seven- and 10-year fixed-rate mortgages throughout the United States, typically ranging from $5–$100 million, that are secured by all major real estate asset classes.
In 2014, Starwood Property Trust began investing in real estate assets to complement its Real Estate Lending and Real Estate Investing & Servicing segments. Starwood Property Trust’s equity investments comprise high-quality, stable real estate assets that contain a value-added element, thus allowing the company the opportunity to generate attractive risk-adjusted returns. We focus on investing in properties that generate current cash-on-cash returns while also offering the potential for capital appreciation.
Starwood Property Trust is led by a seasoned management team that has successfully navigated multiple real estate cycles, with a track record of deploying over $29 billion of capital since the company’s inception. In addition, our affiliation with Starwood Capital allows us to capitalize upon the Firm’s 25 years of experience as a real estate investor and broad operating expertise across virtually every real estate asset class. As a result, we possess a granular understanding of real estate credit risk, and can evaluate each transaction from both a lender’s and equity investor’s perspective.
Starwood Property Trust benefits from a leading global sourcing engine that comes from Starwood Capital’s position as one of the largest institutional real estate investors in the world, with 9 offices in four countries. As a result, we are able to cast a wide net in the search for investment opportunities, and can selectively pursue only those that offer the most attractive potential risk/reward profiles.
With access to multiples sources of financing and an experienced team of loan origination and syndication professionals, we can offer a customized, one-stop solution to our borrowers—in keeping with our goal of being on virtually every major commercial real estate investor’s short list of preferred lenders. Underscoring our scale, the average size of our loans since inception is approximately $90 million, and we have the ability to structure and originate loans as large as $500 million.
Starwood Property Trust’s acquisition of LNR Partners, the largest special servicer in the United States, greatly expanded our expertise in the distressed marketplace. We can analyze both the commercial mortgage-backed securities markets and LNR’s special servicing portfolio to identify situations where we can provide potential solutions for troubled borrowers.
The expertise developed through Starwood Capital’s symbiotic business lines enhances Starwood Property Trust’s judgment throughout the underwriting process. These investment platforms provide the company with critical, bottom-up intelligence that helps set the agenda for future transactions.
This has been Starwood Capital’s primary business since the Firm raised its first distressed real estate fund in 1992. In executing this strategy, the Firm enables Starwood Property Trust to participate in global investment opportunities across all real estate asset classes and positions in the capital stack that offer compelling risk-reward propositions. For example, Starwood Capital has been one of the most prolific investors in distressed debt since the Global Financial Crisis, while acquiring cash-flowing office, residential, retail, industrial and hotel assets at discounts to replacement cost.
Starwood Retail Partners manages one of the largest regional mall operating platforms in the U.S., with a portfolio of 30 properties totaling 28 million square feet of gross leasable area and almost $6 billion of gross asset value. The team seeks to capitalize on opportunities in the fast-changing retail landscape by acquiring, redeveloping and repositioning premier real estate assets in the regional mall, lifestyle and power-center sectors. Starwood Retail Partners has built strong relationships with tenants and can provide accurate operating metrics to help fine-tune asset cash flow projections.
SH Group is a hotel brand management company that generates significant proprietary investment opportunities for Starwood Property Trust. SH Group brings operational expertise in the areas of revenue management, marketing, food & beverage, systems and cost management to the acquisition and underwriting teams of Starwood Capital and its affiliates. SH Group is the force behind some of the most groundbreaking and dynamic hotel brands in the world, including
In 2013, Starwood Capital created TRI Pointe Homes (NYSE: TPH)—a West Coast homebuilder that merged with Weyerhaeuser’s homebuilding business in 2014 to create one of the largest homebuilders in the U.S.—which provides a unique perspective on the U.S. residential markets. Starwood Land Ventures, one 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.
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, and other affiliated investment vehicles, Starwood Energy Group manages total equity commitments of approximately $2.3 billion, and has executed transactions totaling more than $5 billion in enterprise value. The team leverages its extensive operations, development, construction, acquisition and financing expertise to provide valuable insights into this rapidly evolving industry.
Starwood Oil & Gas invests in conventional and unconventional oil & gas assets in North America, and offers a unique perspective on the dramatic transformation of the energy sector. In 2013, the group made a $35 million investment in Northeast Natural Energy to fund the Charleston, WV-based company’s acreage acquisition and development program in one of the most prolific areas of the Marcellus Shale. In 2015, the group led a $110 million investment in EagleRidge Energy, a Dallas-based oil & gas producer focused on one of the lowest-cost natural gas shale plays in Texas.
Since our inception, we have prided ourselves on our ability to disintermediate traditional senior mortgage and mezzanine lenders by providing one-stop, combined financing in a single seamless process for borrowers. Our focus on large, customized financing solutions has helped set us apart from our competitors.
Starwood Property Trust has developed a culture of underwriting real estate loans with a long-term balance-sheet perspective. We also leverage Starwood Capital Group’s 25 years of real estate investment experience when sourcing and underwriting potential transactions.
Starwood Property Trust’s broad wholesale asset origination, acquisition and servicing model provides the company with the flexibility and expertise to invest across the real estate capital structure to take advantage of changing dynamics at different points in the real estate cycle.
Starwood Property Trust is highly focused on mitigating risk in its portfolio. Our strategy is built on using modest financial leverage to seek to achieve our target returns, and our floating-rate business model provides protection from higher interest rates. In addition, our position as a leading commercial special servicer provides us with a unique credit hedge against our CMBS and loan investments.