Starwood Property Trust And Fortress Credit Corp. Co-Originate $285 Million Loan
- Loan Collateralized By Portfolio of 123 Red Roof Inn Hotels -
- Starwood and Fortress Affiliates Securitize $200 Million A-Note; Retain B-Note -
GREENWICH, Conn. and NEW YORK, Aug. 8, 2013 /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced the co-origination, with an affiliate of Fortress Investment Group LLC (NYSE: FIG), of a $285 million loan (the "Loan") on a portfolio of 123 Red Roof Inn Hotels totaling 14,585 rooms in 29 states (the "Portfolio"). The loan is sponsored by a joint venture between Five Mile Capital Partners LLC and Westmont Hospitality Group (the "Sponsors").
The Loan upsizes and extends a $275 million debt package Fortress provided to the Sponsors in August of 2011 to acquire the Portfolio. Starwood purchased the $185 million A-note on the initial loan. The current Loan is a 50%-50% pari-passu structure, with both lenders sharing economics through the last dollar of debt. The Sponsors plan to use the capital to continue to upgrade the properties.
Starwood and Fortress affiliates securitized a $200 million senior A-note to increase their investment returns and retained equal portions of the Loan's related B-Note.
"We are pleased to partner with Fortress to extend the loan to Five Mile and Westmont with a new structure that allows them to best execute their business plan of renovating the portfolio and enabling select property releases," said Boyd Fellows, President of Starwood Property Trust. "This transaction is a prime example of an advantage we both have as balance sheet lenders when our clients want to optimize a financing before it has matured."
Red Roof Inn is an economy hotel chain with properties located throughout the United States.
About Starwood Property Trust, Inc.:
Starwood Property Trust, Inc. is focused on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities ("CMBS"), and other commercial real estate-related debt investments. The Company through its 2013 acquisition of LNR Property LLC ("LNR") now also operates as special servicer in the United States and a primary and special servicer in Europe and has expanded its product offering to include fixed rate conduit loans. Starwood Property Trust, Inc. also invests in residential mortgage-backed securities ("RMBS") and residential real estate owned, and may invest in non-performing loans, commercial properties subject to net leases and residential mortgage loans. The Company is externally managed and advised by SPT Management, LLC, an affiliate of Starwood Capital Group, and has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.
Fortress Investment Group LLC is a leading, highly diversified global investment firm with $54.6 billion in assets under management as of June 30, 2013. Founded in 1998, Fortress manages assets on behalf of over 1,500 institutional clients and private investors worldwide across a range of private equity, credit, liquid hedge funds and traditional asset management strategies. Fortress is publicly traded on the New York Stock Exchange (NYSE: FIG). For additional information, please visit www.fortress.com.
Investor Relations – Starwood Property Trust
Media Relations – Starwood Property Trust
Jason Chudoba, ICR, Inc.
Fortress Investment Group LLC
Gordon E. Runte, 212-798-6082
SOURCE Starwood Property Trust, Inc.