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Starwood’s Sternlicht: Don’t Stress Over CRE Bubbles
Boston Federal Reserve president Eric Rosengren has warned that low interest rates are pumping up property values. But strong real estate fundamentals, combined with the global interest rate environment, will likely mitigate risks. This is according to Starwood Capital Group president Barry Sternlicht, who indicated that any asset bubble created likely won’t pop.
“The core fundamentals of the property sector haven’t been this good in the United States in 20 years,” he said. “Housing formation is good. The housing market is OK. Apartment rents are going up.” Sternlicht has acquired about $8 billion of apartments in the past six months. He pointed to Nashville, Denver, Seattle and Southern California as hot markets.
