Barry Sternlicht and Jeff DiModica

When Starwood executives talk, the industry listens, and for good reason.

“We’ve invested every quarter since we started the company 15 years ago,” Jeff DiModica said. “We’ve maintained low leverage and, fortunately, only have 10 percent of our assets in U.S. office. In holding those two things constant, we’ve been able to significantly outperform since the beginning of COVID.” 

Barry Sternlicht moved Starwood Capital Group’s headquarters from Connecticut to South Florida roughly seven years ago, with DiModica following a year later. Since then, they’ve focused on deepening the company’s roots in the 305 as well as launching new verticals from their home base at 2340 Collins Avenue in Miami Beach. 

“There’s definitely something to being a local,” DiModica said. “We probably didn’t understand the market as well until we moved here. Now that we’re locals, we understand it block by block. We have a higher comfort level because we’re here, and that’s why we’ve grown the book.”

The proof is in the pudding. Florida loans now account for more than 10 percent of Starwood’s global loan book — or around $2 billion in commitments. Then, there’s its extensive equity investments, which include multifamily and, of course, hotels. 

“South Florida has continued to be a green color for us even with the amount of supply that’s coming online,” DiModica said.

This past year, Starwood launched two new verticals: Starwood Digital Ventures, a platform dedicated to the firm’s growing global data center investment strategy, and Starwood Solutions, aimed at tackling the myriad issues in CRE portfolios today, from asset and portfolio valuations to help with restructurings.

Leaning on the significant asset management chops of Starwood’s special servicer, LNR, Starwood Solutions was rolled out during a critical period for CRE, as borrowers grappled to find a way forward amid volatile market conditions. With $88 billion in loan workouts under its belt, LNR offers expertise that few others have — and the team’s phones have been ringing off the hook since. “We’re really excited about the reception that we’ve received,” DiModica said of Starwood Solutions. “The marketplace has been excited hearing about the opportunity for us to help them.” 

As for the rest of 2024? The sky is seemingly the limit for this shooting Star. “We have over a billion dollars of liquidity that we announced last quarter to continue to make new loans, and we’ll continue to add across all of our cylinders,” DiModica said.