230 West Monroe, Chicago, IL
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 largest commercial mortgage REIT in the United States, with a market capitalization of approximately $6 billion and 350 employees.
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.
While other commercial real estate finance companies remain focused solely on specific sectors of the market, Starwood Property Trust’s multicylinder investment platform allows it to dynamically seek out investment opportunities across a much broader universe. Starwood Property Trust’s management team collaborates with Starwood Capital Group and its approximately 3,400 employees across 10 offices worldwide on a top-down and bottom-up approach to finding the best risk/reward opportunities. By leveraging the scale and global relationships of Starwood Capital Group and its affiliates, Starwood Property Trust is able to identify potential transactions that the company believes cannot be sourced by many of today’s market participants.
With total capital deployed since inception of over $37 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
Starwood Property Trust completes the $422M acquisition of 32 affordable housing communities comprising 8,948 units in the Tampa, Orlando and West Palm Beach metropolitan areas in Florida. The portfolio includes what the team believes are some of the highest-quality low-income properties in the state.
Starwood Property Trust acquires a portfolio of 34 medical office buildings totaling 1.9M square feet for approximately $760 million. These properties are primarily affiliated with leading hospitals or located on or adjacent to major hospital campuses throughout the United States.
Starwood Property Trust’s primary business since the company’s IPO in 2009, the real estate lending segment has deployed over $23 billion of capital since inception. The company has built a leading franchise in the global real estate finance market by offering seamless, customized solutions for borrowers—including first mortgages, subordinate debt, mezzanine loans, B-notes and preferred equity. The company possesses the size and scale to serve as a one-stop lender, and the team leverages Starwood Capital Group’s expertise across virtually every real estate asset class to help source, structure and underwrite transactions.
This segment includes a variety of business lines focused on commercial mortgage-backed securities (CMBS) and commercial real estate investments, special servicing operations and a commercial mortgage conduit platform. The company’s leadership in CMBS 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 for this segment’s investments across multiple real estate cycles.
In 2014, Starwood Property Trust began investing in real estate assets to complement its other businesses. These equity investments, totaling approximately $3 billion, comprise high-quality, stable real estate assets with a value-added element—thus allowing the company the opportunity to generate attractive risk-adjusted returns. The company focuses on investing in properties that generate current, stable cash-on-cash returns while also offering the potential for capital appreciation.
Starwood Property Trust has successfully navigated multiple real estate cycles, with a track record of deploying over $33 billion of capital since inception. In addition, the company’s affiliation with Starwood Capital Group allows Starwood Property Trust to leverage the Firm’s 28 years of experience as a real estate investor and broad operating expertise. As a result, the company possesses a granular understanding of real estate credit risk, and can evaluate each transaction from both a lender’s and equity investor’s perspective.
With access to multiple sources of financing and an experienced team of loan origination and syndication professionals, Starwood Property Trust can offer customized and creative solutions to borrowers—in keeping with its goal of being included on virtually every major commercial real estate investor’s short list of preferred lenders. Underscoring Starwood Property Trust’s scale, the average size of its loans since inception is nearly $100 million, and the company has the ability to structure and originate loans as large as $500 million.
Starwood Property Trust benefits from an unsurpassed global sourcing engine that comes from Starwood Capital Group’s position as one of the largest institutional real estate investors in the world, with more than 3,400 employees across 10 offices on three continents. As a result, the company is able to cast a wide net in the search for investment opportunities, and can selectively pursue only those that offer particularly attractive potential risk/reward profiles.
With Starwood Property Trust’s 2013 acquisition of LNR came LNR Partners, the largest special servicer in the United States. This greatly expanded the company’s expertise in the distressed CRE marketplace. The Starwood Property Trust team can analyze both the commercial mortgage-backed securities markets and LNR’s special servicing portfolio to identify situations where it can provide potential solutions for troubled borrowers.
The expertise developed through Starwood Capital Group’s symbiotic business lines enhances Starwood Property Trust’s judgment throughout the underwriting process. Starwood Capital Group’s affiliates and specialized teams—which provide Starwood Property Trust with critical, bottom-up intelligence in formulating its investment strategy—encompass the following sectors and asset classes:
In addition, Starwood Property Trust’s special servicer tracks terabytes of proprietary historical commercial real estate data from over 100,000 performing and non-performing loans in its database—which helps inform decisions across the organization.
Starwood Property Trust has developed a culture of viewing real estate lending from a long-term balance-sheet perspective. The company internally underwrites and asset manages every transaction in its portfolio—which is expensive and time-consuming, but the team believes that this approach explains the portfolio’s exemplary credit performance, with no losses to date on over $23 billion in loan investments since inception. The Starwood Property Trust team also believes that it benefits from Starwood Capital Group’s 28 years of real estate investment experience when sourcing and evaluating potential transactions.
Starwood Property Trust prides itself on the ability to disintermediate traditional senior mortgage and mezzanine lenders by providing one-stop, combined financing in a single seamless process for borrowers. The team believes that its focus on large, customized financing solutions has helped set Starwood Property Trust apart from its competitors.
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. The company’s strategy is built on using modest financial leverage in seeking to achieve its target returns, and its floating rate business model provides protection from higher interest rates. In addition, Starwood Property Trust’s position as a leading commercial special servicer provides the company with a unique credit hedge against its CMBS and loan investments.