The spread between historically low interest rates and the money that real estate generates is "truly astonishing," Starwood Capital Group Chairman and CEO Barry Sternlicht told CNBC on Tuesday.
"You can buy assets below replacement costs still," he said in a "Squawk Box" interview. "You can finance them with positive leverage — meaning the cost of borrowing is much lower than the yield on the property."
Sternlicht pointed out, "Never seen it in my career. It's truly astonishing. This is the 'Goldilocks Period' for real estate."
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Starwood Capital, a privately held investment firm specializing in real estate, was formed by Sternlicht in 1991. It has assets of $22 billion under management.