Thomas Barrack serves as an outside advisor to Donald Trump, but he’s also a real estate investor and manager. This article details the rise and fall of Barrack’s business fortunes and his plan to turn around his business. But apparently it’s not going to help shareholders in his REIT much. It’s good reading for investors, and a cautionary tale.
The tri-party merger of equals between Colony Capital and NorthStar Realty Finance and NorthStar Asset Management was supposed to be Barrack’s crowning achievement. But shares of Colony NorthStar have plunged by nearly 60% since they began trading in 2017. The merger was designed to create a giant real estate investment trust with a market value of $9 billion. Today the market capitalization of Colony NorthStar is $3.4 billion.
“The results have been disappointing, and that’s the bottom line,” Barrack said on a Colony NorthStar investor call earlier this year. “It’s the majority of my personal net worth. It’s the dominant factor in my and my family’s pride, reputation and future.”