Starwood Capital Group Forms Joint Venture with Holland Partner Group to Acquire and Develop 375-Unit Multifamily Opportunity Zone Development in Los

Starwood Capital Group ("Starwood Capital"), a global private investment firm focused on real estate and energy investments, today announced that a controlled affiliate has formed a joint venture with Holland Partner Group to acquire and develop a Class A multifamily project, 550 Harborfront, in San Pedro, CA, an emerging coastal neighborhood in the South Bay of Los Angeles. Starwood and Holland expect to complete the Opportunity Zone development in the Spring of 2020.

550 Harborfront will consist of 375 units in a seven-story, podium-style community with 37 studios, 177 one-bedroom units, 139 two-bedroom units, 20 three-bedroom units and 2 four-bedroom units. Additionally, the property will offer residents top-of-the-market finishes and a comprehensive amenity package consistent with market standard Class A multifamily developments throughout Los Angeles. Tenant amenities will include a two-story fitness center, resident lounges, a pool and a rooftop lounge with outdoor kitchens and barbecue stations, which are collectively expected to attract young professionals and families. Located at 550 South Palos Verdes Street, 550 Harborfront is well situated at the intersection of the waterfront and San Pedro's commercial district, and within one mile of the 110 Freeway providing convenient access to Downtown Los Angeles and other major employment centers.

"We are excited by the opportunity to develop the first Class A multifamily property in San Pedro since 2008," said David Baker, Senior Vice President at Starwood Capital. "550 Harborfront is well positioned to capture demand given its coastal location and accessibility, over $1 billion of ongoing investment into the adjacent waterfront and ports, and relative affordability in the context of persistent housing shortages and rising rents in LA's core infill neighborhoods." 

"The Los Angeles multifamily market is among the strongest in the United States and San Pedro in particular stands to benefit from its favorable supply/demand fundamentals," said Anthony Balestrieri, Senior Vice President and head of Starwood's Opportunity Zone investment business. "San Pedro's Opportunity Zone designation has accelerated investment into the neighborhood, which we expect to grow. As Starwood Capital grows its Opportunity Zone investment portfolio we will continue to identify attractive investment opportunities and create value for our investors."

Starwood Capital announced the formation of its Opportunity Zone business on Jan. 30, 2019, to ensure the success of its ongoing investments in Opportunity Zones, which were created by the 2017 Tax Cuts and Jobs Act to offer investors certain tax advantages for developing and operating assets in designated Opportunity Zones. Starwood Capital will focus its Opportunity Zone strategy on markets in regions where the firm has developed a strong real estate presence, including the West Coast, Southeast and large metropolitan markets such as New York City and Washington, D.C.Starwood Capital is well positioned in many of these markets and will continue to actively invest in, reposition and develop real estate assets in these communities.

About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 13 offices in five countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised $45 billion of equity capital, and currently has in excess of $60 billion of assets under management. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 27 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. 

About Holland Partner Group 
Founded in 2000, Holland Partner Group (Holland), based in Vancouver, Washington, is a fully integrated real estate investment company. Our investments in multi-family development, redevelopment and mixed-use assets represent $10 billion in transactions and over 50,000 units. Holland is recognized for investment excellence by clients, customers, lenders and capital partners. Holland is also respected by development consultants, trade contractors, public sector officials and members of the community.
The company's vertically integrated focus has developed the real estate industry's most consistent and reliable delivery mechanism. A hallmark of Holland is our narrow focus on exceptional developments in select markets that meet rigorous criteria.

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