Starwood Property will form in Maryland and will focus "primarily on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments," according to the filing. The company intends to qualify as a REIT and be managed by SPT Management, LLC, which is controlled by Barry Sternlicht--chairman and CEO of Starwood Capital.
The notion of forming this group is to take advantage of the next five years, which Starwood foresees as incredibly lucrative. According to the filing, the proposed REIT will take advantage of private investors, moderate leverage and the government programs PPIP and TARP.
The company states in its SEC filing a reason for the burgeoning investment group: "Over the next few years, [Starwood Property] also anticipate[s] attractive investment opportunities in the corporate debt of publicly-traded commercial real estate operating and finance companies. We believe that debt maturities and deteriorating operating fundamentals will continue to plague both public and private real estate companies for some time, creating compelling investment opportunities."
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