Barry Sternlicht’s Starwood Property Trust Inc. and Starwood Capital Group LLC agreed to buy LNR Property LLC, the biggest manager of distressed U.S. commercial real estate loans, for $1.05 billion.

Starwood Property, the largest commercial-mortgage real estate investment trust, will pay $856 million for most of LNR’s businesses, including its U.S. special servicing unit and 50 percent of LNR’s stake in Auction.com, the companies said today in a statement. Starwood Capital, Sternlicht’s closely held investment firm, will buy LNR’s U.S. property-development unit and the other half of the Auction.com interest for $197 million.

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