GREENWICH, CONNECTICUT Starwood Property Trust has deployed US$271.9 million of capital through three separate loan originations.
A US$206 million first mortgage loan, mezzanine loan and bridge loan were distributed on a portfolio of 10 full-service U.S. hotels. The remaining US$65.9 million disbursements went toward mortgages for a Colorado retail development and a portfolio of U.S. pharmacies.
Starwood Property Trust recently raised net proceeds of approximately US$434.8 million through a share sale, and these investments represent the deployment of existing cash on hand, as well as a portion of the proceeds from the offering.
“We continue to effectively deploy our capital as we source attractive investments,” says Chairman and CEO Barry Sternlicht. “These latest loans add further scale, diversity and safety to our portfolio. We have a number of competitive advantages in the marketplace, including our size, experience and relationships, allowing us to be a flexible lender capable of tailoring our financings to borrowers’ unique needs.”
The hotel loan was structured as a US$155 million first mortgage secured by eight hotels comprising 2,300 guestrooms, with the remaining US$51 million in loans secured by two other hotels. The first mortgage loan and the mezzanine loan, which on an aggregate basis have a loan to value ratio of less than 62%, both mature in January 2016, while the bridge loan matures in January 2012. The company’s expected levered return on the hotel retained loans is in excess of 12%.