Starwood to Raise $500 Million for Opportunity Zone Investments
January 31, 2019 | James Sprow | Blue Vault
Starwood Capital Group is looking to raise $500 million for investments in low-income areas deemed "opportunity zones" under a new U.S. tax policy, according to the January 30 announcement from the global private investment firm.
Starwood, which has a portfolio of 58 properties in opportunity zones, intends to invest in markets where it has "a strong real estate presence," including the West Coast, Southeast and metropolitan areas like New York and Washington, D.C.
The company also appointed Anthony Balestrieri as senior vice president, effective immediately.
Balestrieri, who formerly served as director and head of acquisitions at MetLife Real Estate Investors' office in Washington, D.C., will lead Starwood's opportunity zone investment business. He will be responsible for the identification of investment opportunities and structuring transactions under the 2017 Tax Cuts and Jobs Act, according to Starwood’s announcement.
"At Starwood Capital, we look for talented individuals with a track record of success to help the firm continue to create significant value for our investors," said Christopher Graham, Senior Managing Director and Head of Real Estate Acquisitions for the Americas of Starwood Capital Group. "Anthony brings a unique skill set and a proven track record to Starwood, and we are excited to welcome him to the firm. We believe Anthony will be a great addition to our talented professional team as we capitalize on the market opportunity to build our Opportunity Zone investment portfolio and continue to deliver attractive returns to our investors."
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 13 offices in five countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised $45 billion of equity capital, and currently has in excess of $60 billion of assets under management. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 27 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.
Starwood Real Estate Income Trust, Inc.
In October 2017 Starwood filed a prospectus for a nontraded REIT offering, Starwood Real Estate Income Trust, Inc. The REIT is raising up to $5 billion in the offering by issuing four classes of common stock (Classes D, S, T and I). The REIT announced on December 21, 2018, that it had broken escrow with approximately $165 million in proceeds for its continuous public offering of shares of common stock. As of December 31, 2018, the REIT reported a net asset value for its common shares outstanding totaling $164 million. As of that date, it had issued and sold 8,198,838 shares of our common stock (consisting of 6,610,280 Class S shares, 483 Class T shares, 46,075 Class D shares, and 1,542,000 Class I shares) in the public offering.
The NAV per share, which is updated as of the last calendar day of each month, is posted on the REIT’s website at www.starwoodNAV.reit. The transaction prices effective February 1, 2019, are $20.01 for Class I shares and $20.00 for Classes D, S and T shares.
In January 2019 the REIT acquired a fee simple interest in hotel properties which together comprise a U.S.-based select service hotel portfolio from affiliates of Noble Investment Group. The portfolio is a fully renovated, premium-branded, stable select service portfolio totaling 1,057 hotel rooms, comprised of eight hotels located primarily in Florida and Colorado.
Sources: Starwood Capital Group, SEC