Starwood Property Trust deploys USD107m of capital
Starwood Property Trust has deployed USD107m of capital through two separate transactions: the origination of a USD61m first mortgage loan on two Class B+/A- office buildings in Glendale, California; and a USD46m first mortgage loan on a 315-room Hilton hotel in Rockville, Maryland.
The Blackstone Group 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," says Boyd Fellows (pictured), 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 USD48.5m in initial funding and future funding of USD12.5m 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 USD48.5m in initial proceeds and USD12.5m in future funding to help with the lease up of the property. We look forward to our next deal with Starwood," says 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 centre, and an indoor/outdoor swimming pool.
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