Starwood Property invests $769 million in CRE in 2Q

Starwood Property Trust (STWD) invested just shy of $769 million in 21 separate commercial real estate transactions in the second quarter, boosting its loan portfolio to more than $2.4 billion, as the firm increases its focus on CRE originations. The Greenwich, Conn.-based real estate investment trust highlighted a $175 million first mortgage for the International Home Furnishing Center in High Point, N.C. The loan covers a 2.6 million-square-foot furniture showroom acquired by a joint venture between Bain Capital Partners and funds managed by Oaktree Capital Management. The loan matures in 2016 with Starwood’s expected return projected to exceed 12%. In addition, Starwood originated a $71.5 million mezzanine loan secured by a portfolio of 45 properties in Germany that are leased to Metro Cash & Carry, a subsidiary of German retail company Metro Group. Starwood Chairman and CEO Barry Sternlicht said the company’s “pipeline of opportunities remains robust” and the quality of transactions “will create long-term value for shareholders.” “I am pleased that the company has added an additional European market loan and continues to creatively source off-market transactions,” Sternlicht said. Write to: Kerri Panchuk.

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