Barry Sternlicht’s Starwood makes rival bid for Monmouth Real Estate

Offer could disrupt earlier deal for Sam Zell’s Equity Commonwealth to acquire the REIT

National /
Jul.July 13, 2021 09:35 AM
Sam Zell of Equity Commonwealth and Barry Sternlicht of Starwood Capital Group (Getty)

Sam Zell of Equity Commonwealth and Barry Sternlicht of Starwood Capital Group (Getty)

Two months after Monmouth Real Estate Investment reached a deal to be acquired by Sam Zell’s Equity Commonwealth, Barry Sternlicht’s Starwood Capital Group is jumping into the ring with its own rival offer.

Starwood provided an unsolicited bid to acquire Monmouth, according to Bloomberg, which cited people familiar with the matter. The real estate investment trust confirmed it received an all-cash takeover offer from a large “private investment firm” for $18.70 per share. It did not disclose the buyer’s identity.

The deal could lead to a bidding war between two industry titans to take control of the industrial real estate-focused Monmouth, which is based in Holmdel, New Jersey. Sternlicht’s Starwood, as the rival bidder, was part of a review process earlier this year that led to Monmouth’s sale to Equity Commonwealth.

Monmouth could be on the hook for a $62 million termination fee, Bloomberg reported, if it abandons the original all-stock deal, which valued it at $3.4 billion. The terms of that deal would see Monmouth’s investors receive 0.67 shares of Equity Commonwealth for each Monmouth share they own.

The real estate firm said its board is evaluating Starwood’s offer.

[Bloomberg] — Keith Larsen





    Related Articles

    arrow_forward_ios
    61-01 Springfield Avenue in Bayside with Skyline Properties’ Robert Khodadadian and Daniel Shirazi (Google Maps)
    Bayside shopping center goes for $32M to lead mid-market sales
    Bayside shopping center goes for $32M to lead mid-market sales
    Equity Distribution Acquisition Corp. chairman Sam Zell (Getty)
    Zell-backed SPAC fizzles
    Zell-backed SPAC fizzles
    Jean-Georges Vongerichten and 99 Prince Street in Manhattan NYC (Getty Images, Google Maps)
    Jean-Georges’ Mercer Kitchen closing after 25 years
    Jean-Georges’ Mercer Kitchen closing after 25 years
    Marx Realty president Craig Deitelzweig and 545 Madison Avenue (Marx Realty, Google Maps, Getty Images)
    Milstein’s real estate firm extends at 545 Madison Avenue
    Milstein’s real estate firm extends at 545 Madison Avenue
    SoftBank founder Masayoshi Son, Fortress Investment Group principal Peter Briger (Wikipedia, Long Arc Capital, Getty)
    Fortress on chopping block as owner SoftBank bleeds
    Fortress on chopping block as owner SoftBank bleeds
    From left: Howard Hughes CEO David O’Reilly and Jean-Georges Vongerichten in front of the Tin Building at the Seaport (Photo Illustration by Steven Dilakian with Getty Images, Howard Hughes and Twitter/arcofnyc)
    Howard Hughes buys stake in Jean-Georges
    Howard Hughes buys stake in Jean-Georges
    From left: Savitt Partners Bob Savitt and Tory Burch with 11 West 19th Street
    Tory Burch staying put at Savitt’s 11 West 19th Street
    Tory Burch staying put at Savitt’s 11 West 19th Street
    Ruschmeyer’s Hotel (Facebook, Getty)
    Montauk hotspot quietly for sale after losing liquor license
    Montauk hotspot quietly for sale after losing liquor license
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...