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The Bottom Line: Starwood Stakes a Retail Claim
Shopping Centers Today, August 2012
Reproduced by permission of Shopping Centers Today, a publication of the International Council of Shopping Centers
Having made a name in the hotel sector with its Starwood Hotels & Resorts subsidiary, Greenwich, Conn.–based Starwood Capital Group is determined to establish itself in the shopping center sector as well. The firm closed on the $1 billion purchase of a 90 percent stake in seven Westfield Group properties, comprising some 6.6 million square feet, in July. Westfield retains the other 10 percent. Starwood Capital brought in Scott Wolstein, founder of DDR, to head the Starwood Retail Partners division overseeing those properties. “Shopping centers in the U.S. are undergoing a transformation as junior anchors and value retailers are rethinking store size and distribution needs, to the benefit of regional malls, including the ones we recently acquired from Westfield,” Wolstein said in a prepared statement. “We expect to build on this platform in the years to come.” CBL & Associates Properties will provide some management services for six of the assets.
The malls are Chicago Ridge Mall; Gateway Mall, in Lincoln, Neb.; Louis Joliet Mall, Chicago; Metreon, San Francisco; Solano Mall, Fairfield, Calif.; SouthPark Mall, Cleveland; and Westland Mall, Miami.