Starwood Property Trust Announces $520 Million Capital Deployment
- Closes Four Complex Loans in Los Angeles, San Jose, Boston and Finland -
GREENWICH, Conn., Sept. 30, 2013 /PRNewswire/ -- Starwood Property Trust, Inc. (the "Company") (NYSE: STWD) today announced that it recently deployed $520 million of capital through four separate transactions: the origination of a $145 million first mortgage and mezzanine loan to refinance The Burbank Studios, a 35-acre media campus located in Burbank, Calif.; the origination of a $138 million first mortgage loan for the acquisition of Cisco Systems' 46 acre West Tasman Campus located in San Jose, Calif.; the origination of a $112 million first mortgage loan collateralized by Seaport Square, which consists of 844,820 square feet of land featuring 15 parking lots that is fully entitled for 5.4 million square feet of mixed-use development in Boston's Seaport District; and the co-origination, with United Kingdom-based Starwood European Real Estate Finance, of a €95 million first mortgage loan to refinance a portfolio of 225 retail and convenience stores located in Finland. The Company expects to leverage the domestic loans through the sale of A-notes or through its lines of credit, ultimately deploying approximately $250 million of equity achieving the target return for our core lending book.
"Our pipeline today, both in the U.S. and Europe, is as robust as it has ever been and our competitive advantages continue to put us in position to originate and close high-quality loans to premier borrowers as exemplified by these four complex transactions," said Boyd Fellows, President of Starwood Property Trust. "All of these loans, as well as the vast majority of our pipeline, float over LIBOR and position us to benefit in a rising interest rate environment."
- Burbank Studios Loan – $145 million first mortgage and mezzanine loan secured by a 35-acre media campus located in the heart of Burbank's media district, situated between the Warner Bros. and Walt Disney studio lots. The property is comprised of approximately 1.0 million square feet, including eight full-service television stages and office space, with entitlements to develop an additional 1.0 million square feet. The television stages are currently 100 percent leased to NBC Universal, iHeart Radio, "Days of our Lives" and "The Tonight Show with Jay Leno." The sponsors, Stockbridge Capital and Worthe Real Estate Group, plan to build two state-of-the-art sound stages and reposition current vacant space into creative office space. The loan's interest rate floats over LIBOR and has a term of five-years.
- Cisco Loan – $138 million first mortgage loan secured by eight, two-story Class A office/R&D buildings on separate legal parcels totaling 810,617 square feet. The Campus is located in San Jose's "Golden Triangle," an area experiencing significant expansion from Silicon Valley technology companies. The sponsor plans to perform market ready improvements to attract high-quality tenants. The loan's interest rate floats over LIBOR and has a four-year initial term with three one-year extension options.
- Seaport Square Loan – $112 million first mortgage loan secured by 844,820 square feet of land, which currently consists of 15 parking lots totaling 2,509 spaces, located in Boston's Seaport District. The sponsors, Boston Global Investors and Morgan Stanley Real Estate Investing, have gained full entitlement and approval for a 22-building master planned development, known as Seaport Square, that includes retail, office, multifamily, hotel and parking components. The loan's interest rate floats over LIBOR and has an initial term of five years with a one-year extension option.
- SLK Loan – €95 million first mortgage loan secured by a portfolio of 225 retail and convenience stores located in major metropolitan areas throughout Finland. The majority of the portfolio consists of Suomen Liikemiesten Kauppaopisto (SLK) stores. The sponsors, Tristan Capital Partners and AEW Europe, plan to manage the properties and leverage an established sales program to liquidate the portfolio over time. The loan's interest rate floats over LIBOR and has a term of three years.
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.
Investor Relations – Starwood Property Trust
Media Relations – Starwood Property Trust
Jason Chudoba, ICR, Inc.
SOURCE Starwood Property Trust, Inc.
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