Sternlicht Seeks $500 Million to Chase Tax Break He’s Chided (1)

Barry Sternlicht’s Starwood Capital Group is seeking to raise $500 million to fund investments in low-income areas deemed “opportunity zones” under a new U.S. tax policy—of which he’s been a vocal critic.

The real estate firm’s announcement ranks it among the largest investors seeking the tax benefit, but doesn’t make it the biggest. Earlier this month, Los Angeles-based CIM Group set out to raise $5 billion for projects in the zones.

Starwood Chief Executive Officer Sternlicht has warned that the policy, tucked into Republicans’ 2017 federal tax overhaul, may distort the real estate market and fuel projects that fail to ...