Deep, Hands-On Real Estate Perspective
With 28 years of experience in real estate, Starwood Capital has acquired over $100 billion of real estate assets, generating strong returns throughout that time.
Starwood Capital possesses a strong ability to pursue a wide variety of investment opportunities as they emerge and is able to move from asset class to asset class, shift geographies domestically to internationally, and change positions in the capital stack as risk/return dynamics evolve.
Scale and Creativity
As one of the largest real estate investors in the world, Starwood Capital benefits from worldwide resources that allow us to create robust deal flow and to regularly access off-market transactions. The firm’s history of creativity extends to innovative transaction structuring and execution.
The firm’s breadth of real estate operating experience is characterized by specialized asset management teams that enhance operational efficiencies and maximize the value of underlying assets.
Capital Markets Skills
Starwood Capital firmly believes that its capital markets expertise sets the firm apart from more traditional real estate investors. We are constantly evaluating real estate in relation to the markets’ valuations in order to capitalize on opportunities in both the private and public sectors.
Starwood Capital is an established global investor with international investments that encompass more than 30 countries. The company and its affiliates currently operate 13 offices worldwide, which has allowed us to efficiently evaluate risk/return profiles for opportunities across the globe.
Seasoned, Stable Management Team
Led by Founder and CEO Barry Sternlicht, our seasoned, stable executive and investment committees have successfully navigated all stages of the real estate investment cycle.
Starwood Capital believes that it possesses an expertise in the design of real estate assets. This sensibility starts at the top: CEO Barry Sternlicht is a member of the Interior Design Hall of Fame. A number of Starwood Capital’s assets have been acclaimed for their aesthetics, which ultimately helps drive value for the firm’s investors.
Commitment to Eco-Conscious Investment
Starwood Capital is constantly setting a new standard for the industry by investing in and developing environmentally responsible real estate across all asset classes. We are a carbon neutral firm and our luxurious 1 Hotel brand embodies the firm’s commitment to hospitality with a purpose: to celebrate nature while encouraging sophisticated travelers to live well, do better, and connect with the world around them.
The expertise developed through the company’s symbiotic business lines provide critical bottom-up intelligence that helps set the agenda for our investment strategy. Our business platforms include: Starwood Property Trust, Starwood Multifamily Portfolio, SH Group, Starwood Retail Partners, and Starwood Land Ventures.
Summary of risk factors
An investment in Starwood Real Estate Income Trust, Inc. involves a high degree of risk. You should purchase these securities only if you can afford the complete loss of your investment. You should carefully read the information set forth in the “Risk Factors” section of the prospectus before buying our shares. Risks include, but are not limited to:
- We have made limited investments to date and you will not have the opportunity to evaluate our future investments before we make them.
- Since there is no public trading market for shares of our common stock, repurchase of shares by us will likely be the only way to dispose of your shares. Our share repurchase plan provides stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. In addition, repurchases are subject to available liquidity and other significant restrictions. Further, our board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders. As a result, our shares should be considered as having only limited liquidity and at times may be illiquid.
- We cannot guarantee that we will make distributions, and if we do we may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may pay from such sources.
- The purchase and repurchase price for shares of our common stock are generally based on our prior month’s NAV and are not based on any public trading market. While there is independent periodic appraisals of our properties, the appraisal of properties is inherently subjective, and our NAV may not accurately reflect the actual price at which our properties could be liquidated on any given day.
- We have no employees and are dependent on Starwood REIT Advisors, L.L.C. (the “Advisor”) to conduct our operations. The Advisor will face conflicts of interest as a result of, among other things, the allocation of investment opportunities among us and Other Starwood Accounts (as defined in the prospectus), the allocation of time of its investment professionals and the substantial fees that we pay to the Advisor.
- This is a “best efforts” offering. If we are not able to raise a substantial amount of capital on an ongoing basis, our ability to achieve our investment objectives could be adversely affected.
- There are limits on the ownership and transferability of our shares.
- If we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to our stockholders could materially decrease.
- The acquisition of properties may be financed in substantial part by debt. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors.
- Investing in commercial real estate assets involves certain risks, including, but not limited to: changes values caused by global, national, regional or local economic performance, the performance of the real estate sector, unemployment, stock market volatility and other impacts of the recent coronavirus pandemic, demographic or capital market conditions; increases in interest rates and lack of availability of financing; vacancies, fluctuations in the average occupancy and room rates for hotel properties; and bankruptcies, financial difficulties or lease defaults by our tenants.
- Management fees and distribution fees are substantial and will reduce your investment returns.
- A change in U.S. tax laws could adversely impact benefits of investing in our shares.
- Disposition of U.S. real property interests by non-U.S. persons is subject to income tax withholding. As a result, investment in our shares may not be appropriate for non-U.S. investors.
IMPORTANT DISCLOSURE ABOUT OTHER STARWOOD PROGRAMS
This sales material may include information related to prior programs sponsored by Starwood Capital Group (“Other Starwood Programs”) and investments made by Other Starwood Programs. Investors in Starwood Real Estate Income Trust will not have any interest in Other Starwood Programs or their investments. The investment strategies of Other Starwood Programs are different from the investment strategy of Starwood Real Estate Income Trust. There is no guarantee that Starwood Real Estate Income Trust will achieve returns similar to Other Starwood Programs. The information provided herein regarding Other Starwood Programs is provided solely for background purposes.
This sales and advertising literature does not constitute an offer to sell nor a solicitation of an offer to buy or sell securities. An offering is made only by the prospectus. This material must be read in conjunction with the Starwood Real Estate Income Trust, Inc. prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus filed with the Department of Law of the State of New York. Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of our securities or determined if our prospectus is truthful or complete. Neither the Attorney General of the State of New York nor the Securities Division of the Office of the Maryland Attorney General has passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense.