Starwood Property Trust announces USD170m capital deployment
Starwood Property Trust has originated a USD170 million first mortgage loan on two Class B office buildings located in the SoHo district of Midtown Manhattan.
Collectively known as One SoHo Square, the two properties located at 161 Avenue of the Americas and 233 Spring Street comprise over 600,000 square feet of office and retail space, which is currently 96 per cent occupied. Stellar Management is the sponsor.
The first mortgage loan will have an initial funding of USD135 million, with USD35 million available for future advances to pay for tenant improvements, leasing commissions and redevelopment costs. The interest rate for the loan floats over LIBOR, matures in three years with two one-year extension options, and has a loan-to-value ratio of approximately 65 per cent.
"The One SoHo Square deal is another example of our ability to provide borrowers with creative lending solutions. Our large scale and flexible capital made it possible for us to principal this relatively large and complex loan," says Boyd Fellows, Director and President of Starwood Property Trust.
"Starwood's tailored financing solution and superb execution made a complex transaction a seamless acquisition," says Laurence Gluck of Stellar Management.
One SoHo Square occupies the majority of a city block on the corner of Avenue of the Americas and Spring Street and is situated four blocks east of the Hudson River and the Holland Tunnel. The Sponsor's redevelopment plan is designed to reposition One SoHo Square into a Class A property.
- How to set up a hedge fund