PE Firm Starwood Raises $2.8 Bil. for Distressed Real Estate
BusinessWeek reports: Private equity firm Starwood Capital Group LLC has reportedly finished raising capital for two funds totaling about $2.8 bil. that will invest in US commercial real estate.
The Starwood Global Opportunity Fund VIII, which will target distressed debt and property, took in more than $1.8 bil., according to a person familiar with the effort. The Hospitality Fund II, which will invest in hotels, attracted almost $1 bil., said the person, who declined to be identified because the deal is private.
Starwood, founded by Barry Sternlicht, had previously raised around $10 bil. of equity for 11 funds and other investments, according to JPMorgan Chase, which helped the firm find investors. Starwood is leading a plan to bring Extended Stay Hotels Inc. out of bankruptcy and purchased loans in October from failed Chicago-based lender Corus Bankshares Inc. as the property market reels from a 40% drop in commercial real estate values from its 2007 peak.
“Raising new capital in this environment speaks to the team at Starwood and the deals they’ve been able to get done,” said Dan Fasulo, managing director of commercial property research firm Real Capital Analytics Inc. “Barry and his team are one of the few that have been able to put money to work in the past few months.”
View the full article on BusinessWeek: PE Firm Starwood Raises $2.8 Bil. for Distressed Real Estate
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Posted by: Matthew Stone