GREENWICH, CT-Barry Sternlicht‘s Starwoood Property Trust and Starwood Capital Group, headquartered here, will pay a total of $1.05 billion to acquire LNR Property LLC, the companies announced Thursday. Founded in 1969, LNR is currently owned by a group that includes Aozora Bank Ltd, Cerberus Capital Management LP, iStar Financial, Oaktree Capital Management LP and Vornado Realty Trust.

Starwood Property is acquiring Miami-based LNR’s US and European primary and special servicing, mortgage and capital businesses as well as 50% of LNR’s stake in for $856 million. The remaining LNR ownership of, as well as LNR’s Commercial Property Group, is going to Starwood Capital in a $197-million deal.

In a statement, Sternlicht, chairman and CEO of Starwood Property, says the acquisition “diversifies Starwood Property Trust’s revenue sources, adds significant scale to our operating platform and dramatically expands our proprietary origination capabilities.” He adds, “We expect the combination of LNR’s capabilities, Starwood Property Trust’s superior access to capital and both firms’ underwriting expertise to result in a long-term and sustainable competitive advantage.”

The deal is expected to close in the second quarter of 2013. will report more about the acquisition later today.