Starwood Capital is raising money for a new investment fund, CEO Barry Sternlicht said yesterday at NYU Schack’s capital markets conference at the Waldorf Astoria Hotel, and may also choose to sell a key portfolio as the government discourages the fund from leveraging its assets (see photos from the day-long event above).

“We want to leverage the portfolio and the government doesn’t want us to,” he said. “We’re going to have to sell it because it’s stupid to own it unleveraged. Our leverage levels are less than 30 percent. It’s crazy.”

Starwood previously raised $2.8 billion through two funds in 2010 — the Starwood Global Opportunity Fund VIII, which raised more than $1.8 billion, and the Starwood Capital Global Hospitality Fund II, which raised $965 million, The Real Deal previously reported. [more]

From left: Related CEO Stephen Ross, Greek shipping executive Vasilis Bacolitsas and the Brompton

Lawyers for Related Cos., the developer of the Upper East Side’s Brompton condominium , asked the U.S. Circuit Court yesterday to overturn a lower court ruling under the Interstate Land Sales Full Disclosure Act that critics charge would stifle new condo development by forcing sponsors to record sales contracts with city agencies even before a building is constructed.

In September 2010, Related, led by billionaire Stephen Ross, lost a closely watched ILSA case from Greek shipping executive Vasilis Bacolitsas and his wife, Sofia Nicolaudou, one of several buyers that filed suit in 2009 to get their escrow deposits returned at the building, at 205 East 85th Street, after the real estate market crashed. [more]

From left: Time Warner Center and a rendering of Hudson Yards

Now that Coach is on the books, Hudson Yards’ next office tenant could be Time Warner, according to the New York Post. The namesake of Related Companies’ Columbus Circle complex has been looking to downsize from the 864,000-square-foot space it owns at the Time Warner Center, and other city office space, in an effort to cut costs.

Related is considering offering the media giant an opportunity to swap its space for a smaller home in Hudson Yards. [more]

Related Companies CEO Stephen Ross and President Jeff Blau were on hand at the official announcement that Coach would occupy about 600,000 square feet at the first building the developer plans to construct in its Hudson Yards project on the West Side. Mayor Michael Bloomberg and City Council Speaker Christine Quinn, as well as executives from bag maker Coach, were present at the event at 30th Street and 11th Avenue this morning. CBRE brokers Mary Ann Tighe and Greg Tosko, represented Coach in the transaction. – Adam Pincus [more]

From left: Related Companies Chairman Stephen Ross and partners Jeff Blau and Bruce Beal

Only 18 months ago, developer and Related Companies Chairman Stephen Ross thought U.S. banks were a wise investment. Now, it seems, he’s changed his mind.
According to the Wall Street Journal, Ross and partners Jeff Blau and Bruce Beal each put $100 million of their own money, in addition to $1 billion raised from investors, into a fund called SJB Escrow Corp. in 2009, and spent a year researching U.S. banks, hoping to buy or invest $1.1 billion in lenders. The deeper they looked however, the more worrying things became; they saw troubled assets, weak loan demand, rising regulatory costs and few growth prospects.
“We’re disappointed to see the opportunity evaporate,” Ross said. “If you look at the environment today, I feel even more comfortable that we made the right decision [not to invest].” [more]

From left: One57 and Extell Development President Gary Barnett, the Touraine and Toll Brothers CEO Bob Toll and MiMA and Related Companies CEO Stephen Ross

There’s a scarcity of new development in Manhattan, and developers are licking their chops. According to Corcoran Sunshine Marketing Group data cited by the New York Times, by the end of 2011 just 1,111 new units will open in Manhattan south of Harlem. That’s down from 1,767 last year, ad 8,552 in 2007.

That’s good news for developers — such as Extell Development, Related Companies and the Toll Brothers who are delivering One57, MiMA and the Touraine, respectively, to the market — who recognize the scarcity of supply and are raising prices and foregoing concessions. In fact, some developers are even refusing to negotiate with buyers on price. [more]

Top row from left: Solow Building Owner Sheldon Solow, Boston Properties Chairman Mort Zuckerman, LeFrak Organization Chairman Richard LeFrak, investor John Paulson; Bottom row from left: Donald Trump, Tishman Speyer Chairman Jerry Speyer, Blackstone Group Founder Stephen Schwarzman, Red Apple Group CEO John Catsimatidis and Related Companies Founder Stephen Ross

Of the 63 New York City residents to make Forbes new list of the 400 richest people in America at least 13 are closely tied to the real estate industry. For example, the third richest New Yorker, right after businessman David Koch and Mayor Michael Bloomberg, is John Paulson, who made billions betting against the housing market right before the crash. He’s the 17th richest person in the country, according to Forbes, with a net worth of $15.5 billion.

The 60th richest American is New York City real estate magnate Richard LeFrak, who is worth $5 billion thanks in part to the large housing developments he owns. He’s 10th among city residents. [more]

Stephen Ross, founder, chairman & CEO of the Related Companies, and Pamela Liebman, CEO of the Corcoran Group, turned out at last night’s Stroock & Stroock & Lavan real estate reception at the Mandarin Oriental Hotel in the Time Warner Center (see photos above). In the Mandarin ballroom, with its breathtaking view of Central Park, Columbus
Circle and the East Side of Manhattan, top real estate executives, lawyers
and others networked with each other over drinks and food.
Others spotted were Joseph Moinian, CEO of the Moinian Group, and Leonard Boxer, chairman of
Stroock’s real estate practice. — Miranda Neubauer [more]

From the September issue: In its eight years of publication, The Real Deal has covered the real estate industry in a city that’s been transformed by a massive building boom, was crippled by the subsequent bust, and is now in the midst of a tentative recovery.
The compendium of stories we’ve written runs the gamut from the record-setting building and apartment purchases during the boom, to the toppling of mega-developers during the bust, to new entrepreneurs trying to get into the real estate game during today’s fragile recovery. This month, for the anniversary of our 100th issue, we bring you some of the most compelling stories we’ve tracked in these pages, many of which have unfolded and evolved over time, much as the magazine itself has. And watch the video below to see The Real Deal Publisher Amir Korangy talk about the special process for creating the unique 100th issue cover.
[more]

Related Companies President Jeff Blau

From the July issue: Jeff Blau is president of Related Companies, one of the largest private real estate development firms in the country, with a portfolio valued at over $15 billion. Earlier this year, Related launched MiMA, a 1.2 million-square-foot, mixed-use development on 42nd Street in Manhattan. The company is also developing the 26-acre Hudson Yards, the largest development site remaining in Manhattan, with plans for up to four corporate headquarters, a retail complex, a hotel, a public school and nine residential buildings. Click here for the complete Q & A. [more]