Commercial real estate is being battered by a 'hurricane' as higher interest rates bite, billionaire investor Barry Sternlicht says

• Commercial real estate is in a "Category 5 hurricane" from rate hikes, Barry Sternlicht said. 
• "It's sort of a blackout hovering over the entire industry," the billionaire investor told Bloomberg.
• Sternlicht's Starwood Capital Group defaulted on a $200 million office mortgage. 

The commercial real estate industry is in a "Category 5 hurricane" from the the Federal Reserve's interest rate hikes, according to billionaire investor Barry Sternlicht. 

"We're in a Category 5 hurricane," the Starwood Capital Group CEO said during an episode of "Bloomberg Wealth with David Rubenstein."