Starwood Property Trust Announces $107 Million Capital Deployment
GREENWICH, Conn., Oct. 11, 2012 /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced that it recently deployed $107 million of capital through two separate transactions: the origination of a $61 million first mortgage loan on two Class B+/A- office buildings located in Glendale, California; and a $46 million first mortgage loan on a 315-room Hilton hotel located in Rockville, Maryland. The Blackstone Group, one of the world's leading investment and advisory firms, is the sponsor of the California office loan and The JBG Companies, one of the largest owners, developers and managers of residential, hotel and retail properties in the Washington metropolitan area, is the sponsor of the Maryland hotel loan.
"Our large scale and experience originating complex loans sets us apart in the market, and we will continue to work with borrowers to structure flexible financing solutions that meet their unique needs," said Boyd Fellows, President of Starwood Property Trust. "We remain focused on identifying origination opportunities in attractive markets with strong sponsors, and believe both of these deals meet these criteria."
The California office loan is collateralized by two office buildings which total an aggregate of 419,000 square feet and are adjacent to each other along Highway 134 in downtown Glendale. Both assets have above market vacancy so the loan was structured with $48.5 million in initial funding and future funding of $12.5 million for tenant improvements and leasing commissions. Major tenants at the properties include New York Life, Prudential Insurance and American Realty Advisors.
"The Starwood Property Trust team put together a creative, flexible loan that provided $48.5 million in initial proceeds and $12.5 million in future funding to help with the lease up of the property. We look forward to our next deal with Starwood," said Christopher Chee, Managing Director at Blackstone.
The Hilton hotel being acquired by The JBG Companies is located 12 miles northwest of Washington D.C. and five miles north of Bethesda, Maryland. The property features 20,000 square feet of banquet and meeting space, a full-service restaurant, a lounge, fitness center, and an indoor/outdoor swimming pool.
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. 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.
Jason Chudoba, ICR on behalf of Starwood Property Trust
Hayley Cook, ICR on behalf of Starwood Property Trust
SOURCE Starwood Property Trust