Thomas J. Barrack Jr., executive chairman of L.A. investment management firm Colony Capital, has extended his reach in the residential market.

Colony American Homes, formed in 2012 by Barrack’s Colony Capital, said yesterday it would merge with Oakland’s Starwood Waypoint Residential Trust. The all-stock deal values Colony American at $1.5 billion and gave its shareholders a 59 percent stake in the merged company.

The new entity will own and manage more than 30,000 rental homes in the United States, 3,667 of which are in California, and will have an asset value of $7.7 billion.

Barrack and Barry Sternlicht, chief executive of Starwood Capital Group, will serve as non-executive co-chairmen of the combined company’s board.

“We believe this merger demonstrates the power of scale and consolidation and really crystallizes the long-term durability of the single-family rental industry,” Barrack said in a statement. “The opportunity in front of us is immense.”

Fred Tuomi, Colony American’s president, will serve as chief executive of the merged company. Doug Brien, chief executive of Starwood, will serve as president and chief operating officer. Arik Prawer, chief financial officer of Colony, will serve the same role.

The merged company’s operational headquarters will be at Colony American’s Scottsdale, Ariz., headquarters, and it will maintain a significant presence in Oakland.