REAL ESTATE NEWS

Starwood Capital Group has closed multiple private credit vehicles, fetching a total of $2.86 billion that the investment firm plans to deploy to support real estate financing solutions.

The fundraising comes from Starwood Australian Real Estate Debt Finance Trust I, Starwood Real Estate Debt Strategies U.S. and Starwood European Real Estate Debt Finance II.

Starwood Capital did not specify if it will target any specific real estate asset classes — but it plans to rely on its three-decade-plus experience in industry lending, even at a time when borrowing is challenging due to high interest rates and concerns about the economy.

"We're incredibly excited to leverage our team's expertise and continue building on Starwood Capital's long-standing success in real estate credit," said Barry Sternlicht, chairman and CEO of Starwood Capital, in a statement.

"As traditional lenders pull back in the face of regulatory and macroeconomic headwinds, Starwood Capital's depth of experience uniquely positions us to provide flexible, high-quality financing solutions at compelling yields through a variety of credit products."

Since 2010, the Miami Beach-based firm said it has completed more than $100 billion of lending transactions through its private investment pools. Some of its offerings include portfolio management, underwriting and origination.

While high interest rates have spooked away financing deals in the CRE sector — momentum appears to be picking back up again. In the first quarter, CBRE's Lending Momentum Index grew by 13% from the previous three months and surged by 90% year-over-year. Also, CRE investment volume was up by 14 percent year-over-year to reach $88 billion.

Source: GlobeSt/ALM