Tag Archives: signals

Starwood IPO Signals Rising Interest by Big Money Managers in Small CRE Financiers

With Announced Using and Ramping Up of Broker-Dealer Network, Starwood Maps Technique for Tapping Retail Investors

Just when it appeared the non-traded REIT sector was collapsing in the middle of dramatically decreasing sales volume, two of the world’s largest CRE investors have actually just recently jumped into the area. Both seem targeting a source of capital formerly neglected by the big cash firms: pooling specific “retail investors” buying securities by themselves account rather than on behalf of big organizations.

Starwood Capital Group Holdings, L.P. became the most recent significant player to check the waters, announcing last week that it was releasing a non-traded property REIT. Starwood stated it intends to raise as much as $5 billion through a going public for the REIT and prepares to utilize the money to get stabilized industrial residential or commercial property and financial obligation in the USA and globally.

The freshly formed Miami Beach-based Starwood Capital affiliate, Starwood Property Income Trust, Inc., filed a registration statement with the United States Securities and Exchange Commission to offer up to $4 billion in common shares and as much as $1 billion in shares under its circulation reinvestment strategy.

Starwood REIT’s goal is to supply “a financial investment alternative for shareholders seeking to designate a portion of their long-lasting financial investment portfolios to CRE with less volatility than publicly traded real estate companies,” inning accordance with the filing. The new affiliate, externally managed by advisor Starwood REIT Advisors, L.L.C, likewise an affiliate of Starwood Capital, is seeking REIT status in the so-called blind-pool offering, the business stated in its S-11 registration filing.

Also on Oct. 17, Starwood Capital announced a major expansion of its broker-dealer affiliate, working with seasoned executive Trisha Miller and a much of her W. P. Carey, Inc. team. W.P. Carey, one of the pioneering companies in the non-listed REIT sector, announced its exit from the non-traded space last summer season to refocus on its core net-lease business.

” Our broker-dealer’s expanded focus to include individual financiers represents a crucial action in Starwood’s development,” stated Barry Sternlicht, chairman and CEO of Starwood Capital. “We have been thoroughly assessing the best ways to reach individual financiers for a long time and believe now is the appropriate time to diversify our offerings to this growing source of capital.”

Following Blackstone’s Lead

The Starwood IPO begins the heels of the development of Blackstone Group’s first non-traded REIT, Blackstone Property Income Trust, which has a goal of raising more than $1.4 billion this year.

” Our objective is to bring Starwood Capital’s leading realty financial investment platform with an institutional charge structure to the non-listed property financial investment trust (REIT) industry,” the filing stated.

Non-traded REITs reached the bottom of their cycle in 2015, striking a 12-year low for sales in 2016 amid increased regulative examination and efforts by companies to reduce their fee structure and increase openness into their operations.

” The pullback developed a funding space and now, quality capital is flying into that space due to the fact that there’s still an essential need for retail investors to position capital and accomplish returns,” said Jim Berry, leader of Deloitte’s U.S. property and building and construction sector practice and co-author of the firm’s recently released 2018 Property & & Construction Outlook.

” The quality of capital is at among the highest levels ever in our industry, and that drives performance in the marketplace and high levels of expectation for investors,” Berry said. “We’ve also seen an increase in investor activism in the publicly traded area, and among the factors for that is that realty is attracting a higher number of specific investors.”

Starwood REIT will consider investments in all types of commercial residential or commercial property, consisting of multifamily, workplace, hotel, industrial and retail, medical workplace, student housing, senior living, data centers, made real estate and storage residential or commercial properties, along with first-mortgage, subordinated mortgage and mezzanine financial obligation.

The REIT’s investment and residential or commercial property acquisition method seeks to take advantage of the scale, credibility and enduring relationships of Starwood Capital, one of the world’s largest real estate business, the company said. Starwood Capital also operates Starwood Residential or commercial property Trust (NYSE: STWD), a commercial home loan REIT.

Help Coming for Yield-Seeking Retail Investors

Blackstone Chairman and CEO Stephen Schwarzman elaborated on the private-equity giant’s options and retail financial investment strategy during the business’s recent third-quarter earnings call.

“We continue to broaden and diversify our fundraising channels, consisting of into retail [investing],” Schwarzman stated, including that Blackstone alternative funds are seeing increased demand from wirehouses, personal banks, independent broker-dealers, registered investment consultants and household workplaces.

“In these channels, financiers by and large have been under-allocated to alternatives within their portfolios, some considerably,” Schwarzman added. “We are assisting them gain access to institutional-quality products, in many cases for the first time.”

With the current oversubscription in Blackstone funds, growth will originate from establishing alternative products in real estate and other sectors, and broadening and deepening penetration into broker-dealer networks and other channels, stated Joan Solotar, Blackstone’s head of private-wealth solutions.

“A great deal of individuals want yields, and we were able to take advantage of the property investing group [and] recognize possessions that were more yield-oriented … and put it in a structure that was available to them,” Solotar stated.

Henderson Hospital structure pouring signals advance of Union Town



A making reveals Henderson Hospital, which is anticipated to open in October 2016 at the corner of Gibson Road and Galleria Drive. The structure for the hospital was poured Thursday, July 9, 2015.

Friday, July 10, 2015|2 a.m.

Henderson city and Valley Health System authorities are hoping a brand-new development job will pave the way for the city to have a much healthier economy– and much healthier people.

Developers, healthcare facility administrators and city officials collected Thursday on a dirt-covered parcel on the corner of Gibson Road and Galleria Drive to mark the structure pouring for Henderson Health center, a Valley Health System facility being improved 30 acres of the prepared Union Village healthcare complex, which will certainly anchor a 170-acre mixed-use advancement to be built over the next years.

“It verifies that we’re back once again,” Henderson Mayor Andy Hafen stated. “We’re well on our method to recuperation.”

The 245,000-square-foot structure, slated to open in October 2016, will certainly provide specialized emergency care, basic surgical treatment, intensive care, intermediate care, advanced imaging, a lab and females’s services, consisting of labor and hospital room, C-section suites and a newborn baby room.

With photos of Henderson embellishing the walls and stone and metal included into the interior decoration, the space aims to have a “calming feel,” said Karla Perez, local vice president for Universal Health Solutions, moms and dad company of the Valley Health System.

Ultra-violet lighting, which has actually been shown to lower the spread of infection, will be added to emergency situation and operating spaces– a function consistent with the medical facility’s focus on conference patient needs, Perez said. “We are putting a lot of believed into the design,” she said.

Click to enlarge photo

This is an image of an architectural rendering of Henderson Hospital, anticipated to open in October 2016 at the corner of Gibson Road and Galleria Drive. The foundation for the healthcare facility was put Thursday, July 9, 2015.

The medical building will certainly be the third medical facility in Henderson and the sixth Valley Health System hospital operating in the Las Vegas location. Regardless of the competition, Perez stated the $168-million Henderson Healthcare facility is a needed addition to the community provided the development in need for health-care services developed by the Affordable Care Act.

The Valley Health System anticipates to work with 700 people, consisting of medical professionals, nurses, therapists and medical service technicians, to staff the 142-bed medical facility by the time it opens, Perez stated.

St. Rose Dominican hospitals originally agreed to build a health center at the site but backed out in February 2013, citing an absence of financing. Early in 2013, Valley Health System announced it would be taking control of the project, which is located near U.S. 95 and Galleria Drive and throughout the street from Cowabunga Bay water park. The $1.2 billion Union Town project, billed as the very first integrated health town in the area, has actually been years in the making. Plans first were revealed in April 2011.

The idea of a full-fledged health community at Union Town is what drew in the Valley Health System, Perez stated, including, “it will generally be a one-stop look for patients.”

Union Town designers– Craig Johnson, David Micheal, Gary Holland and David Baker– recently revealed that Las Vegas Athletic Clubs prepares to develop a fitness center at the site. LVAC likely will break ground on the structure later this year.

“We’re moving on all fronts,” Johnson stated. Construction for Henderson Hospital “is an influential point in the advancement of Union Town.”

With Henderson Medical facility serving as an anchor, developers are hopeful the other pieces of Phase I– a skilled-nursing facility, senior-living town and retail– will certainly start coming together more quickly, Johnson stated. They’re completing a contract for a skilled-nursing center, which they wish to reveal in a few weeks, he said.

The senior-living town will certainly include independent apartments, helped living and take care of people with Alzheimer’s illness, Johnson stated. The combination of living arrangements will certainly fill a need for the valley, which has a growing elderly population, according to a research Union Village commissioned.

“What we’re wishing to do is enhance (elders’) wellness while living there,” Johnson said, through education, fitness, nutritious diets and healthcare.

Developers imagine the retail part of the project as a mix of coffee bar, restaurants, dry cleaners and salons serving individuals living at Union Village and the 6,000 expected employees on school, he stated.

“It’s an extremely complicated task,” Johnson stated. “When you put all those together, it creates a great deal of moving parts.”