Waterfront project includes 1,941 units, 58-story and 42-story buildings.

Cap rates are expected to increase in the second half of the year as US monetary policy enters a period of quantitative tightening.

"They're attacking the economy with a sledgehammer and they don't need to," Starwood Capital CEO Barry Sternlicht told CNBC's Squawk Box.

Acquisition adds 107 remotely operated stores to the Extra Space Storage platform