Starwood Lends $107 Million on Blackstone, JBG Buildings
Starwood Property Trust (STWD), founded by investor Barry Sternlicht, said it issued loans totaling $107 million on two Blackstone Group LP office buildings as well as a hotel in Rockville, Maryland, owned by closely held JBG Cos.
Starwood, based in Greenwich, Connecticut, originated a $61 million loan for the two Blackstone buildings in Glendale, California, which have a total of 419,000 square feet (39,000 square meters), the lender said today in a statement. It also loaned $46 million to JBG, a Chevy Chase, Maryland-based real estate investment manager, for the Hilton Washington, D.C./Rockville Hotel & Executive Meeting Center.
Starwood executives are “focused on identifying origination opportunities in attractive markets with strong sponsors, and believe both of these deals meet these criteria,” Boyd Fellows, the company’s president, said in the statement.
This year, Starwood has been investing about $500 million a quarter in whole loans like the ones announced today along with mezzanine loans, which have higher interest rates, and junior notes, Fellows said in an e-mail today. The 2012 lending level is similar to last year’s, he said. The Blackstone and JBG loans will be kept on Starwood’s balance sheet and are “not intended to be securitized,” he said, declining to provide additional details of the financing.
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