- July 14, 2021
- Posted by: Stratford Team
- Category: Business
Barry Sternlicht’s Starwood Capital Group is moving away from its mall portfolio as values on the properties continue to plunge.
The investment firm has been selling off shopping centers at a loss across the United States, Bloomberg News reported. While Starwood owned 30 malls before the pandemic, it is now down to eight — and those are being run by outside companies and may seek new owners.
Starwood had been the fifth-largest mall landlord in the United States, although retail properties only made up about 5 percent of the firm’s investments. Selling off the retail properties could clear more than $2 billion in commercial mortgage-backed securities debt. The loans are non-recourse, meaning Starwood could walk away from the malls without owing the unpaid balance.
Covid-19 lockdowns had a devastating effect on shopping centers, many of which were already struggling as consumer habits…