Pursuits
Why Barrack, Sternlicht Joined Forces in U.S. Home-Rental Merger
- Colony American, Starwood Waypoint combine for scale
- New company may bring more institutional investors to industry
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The combination of U.S. landlords Colony American Homes and Starwood Waypoint Residential Trust brings together two real estate moguls whose companies are trying to become a bigger force in the young house-rental industry.
Starwood Waypoint is backed by Barry Sternlicht’s Starwood Capital Group, a $44 billion real estate investment firm, while Colony American Homes is affiliated with billionaire Tom Barrack’s Colony Capital Inc., whose assets range from distressed mortgages to Michael Jackson’s Neverland estate. The executives will serve as co-chairmen of the combined rental company, which will own more than 30,000 houses across the country.