Starwood REIT Originates $107.8m in Commercial Mortgages

Starwood Property Trust (STWD) originated three first mortgages for hotel and retail properties and invested about $32m in single-borrower commercial mortgage-backed securitizations (CMBS). The Greenwich, CT-based real estate investment trust (REIT) said the three mortgages have a combined principal of $107.8m and have an expected unlevered return of approximately 11.3% inclusive of fees and a weighted average loan to value (LTV) of approximately 61.5%. The loans consist of a $73.8m loan on a portfolio of 17 extended stay hotels located in Florida, Virginia, Maryland, North Carolina and Georgia, an $18m loan on a beachfront hotel located in Laguna Beach, Calif. and a $16m loan on a retail center located in Orland Park, Ill. The CMBS investments were acquired at a blended purchase price representing 79% of face value with an expected unlevered return of 12%, Starwood said. Starwood is externally managed and advised by SPT Management, an affiliate of Starwood Capital Group. The REIT focuses primarily on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate-related debt investments. Write to Austin Kilgore. The author held no relevant investments.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please