Starwood Property Trust Completes $2.2 Billion Acquisition of Fundamental Income Properties

Starwood Property Trust Completes Acquisition of Fundamental Income Properties

On July 23, 2025, Starwood Property Trust, Inc. (NYSE: STWD) announced the successful closure of its acquisition of Fundamental Income Properties, LLC, a fully integrated net lease real estate operating platform. This significant move cost around $2.2 billion and was finalized in a transaction with Brookfield Asset Management.

This acquisition marks a crucial milestone for Starwood as it aims to stabilize and grow cash flow for its shareholders. Barry Sternlicht, the Company's Chairman and CEO, expressed enthusiasm over the new acquisition, noting how the integration of Fundamental would lead to a stronger operational capacity and enhanced market presence.

Barry emphasized, “We are pleased to announce the completion of our acquisition of Fundamental which should provide a stable, reliable, and growing cash flow stream for our shareholders.” With this new venture, Starwood intends to leverage its existing strengths in a proven, scalable market segment closely related to its business model.

Moreover, the incorporation of Fundamental into the Starwood platform is seen as a strategic enhancement—getting involved in net lease properties where the Company has accumulated valuable experience over time. Barry highlighted the cultural compatibility between Starwood and Fundamental, stating, “The quality of their team, strong structuring capabilities, and deep credit focus are an excellent cultural and operational fit with Starwood.”

The Strategic Vision Behind the Acquisition

Acquiring Fundamental is more than just a financial maneuver; it is a strategic expansion to bolster Starwood's capacity to generate attractive and stable returns primarily through dividends. Currently, Starwood Property Trust manages a diversified portfolio valued at $27.5 billion across both debt and equity investments. The acquisition is aligned with Starwood’s investment objective which aims to identify and execute the best risk-adjusted returning investments across its target asset classes.

The role of advisory firms in this acquisition cannot be overlooked. BofA Securities acted as the primary financial consultant for the acquisition from Starwood’s side. On the other hand, Brookfield Asset Management received advisement from a team including Wells Fargo, Evercore, and Stephens. This highlights the level of expertise involved in shaping this essential deal in the real estate market.

What Lies Ahead for Starwood Property Trust

Looking towards the future, Starwood Property Trust envisions greater collaboration and synergy between its existing resources and rightfully acquired potentials from Fundamental. This strategic growth reflects Starwood’s ongoing commitment to refining its operational models and frameworks to adapt dynamically to market conditions. By welcoming the Fundamental team into their corporate family, Starwood is poised to foster innovation in the net lease segment, ensuring competitive positioning and sustainable growth.

In summary, the acquisition of Fundamental Income Properties stands out as a pivotal step in Starwood Property Trust’s journey, demonstrating an unwavering drive to enhance market share and shareholder value within the real estate investment sector. As this transition unfolds, stakeholders will surely remain watchful of how these large-scale advancements influence Starwood’s performance moving forward.

For further inquiries, you can reach out to Zachary Tanenbaum at Starwood Property Trust by phone at 203-422-7788 or via email at [email protected].

For more information regarding the company, visit Starwood Property Trust’s website.